EVERY-DAY  BUSINESS 
FOR  WOMEN 


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EVERY-DAY  BUSINESS 
FOR  WOMEN 

A   MANUAL   FOR  THE   UNINITIATED 

BY 

MARY   ARONETTA   WILBUR,  M.A. 

FORMERLY   TEACHER   OF   BANKING   AND   POLITICAL    ECONOMY 
IN   MISS   DANA'S   SCHOOL,  MORRISTOWN,    N.  J. 


mm 


BOSTON   AND   NEW   YORK 
HOUGHTON   MIFFLIN   COMPANY 


.*6 


COPYRIGHT,   191O,   BY   MARY  ARONETTA  WILBUR 
ALL  RIGHTS  RESERVED 

Published  May  iqio 


TO  MY   PUPILS 
PAST  AND  PRESENT  PATRONS  OF 

THE   DANA   SCHOOL   BANK 

FOR  WHOM   THESE  TALKS   WERE 

ORIGINALLY  PREPARED 

THEY  ARE  AFFECTIONATELY 

DEDICATED 


300481 


FOREWORD 

In  presenting  this  little  book  to  the  public,  I  have 
no  word  of  apology,  but  only  one  of  explanation. 
Many  years'  experience  with  women's  societies  and 
boarding-school  girls  has  brought  to  my  attention 
the  appalling  ignorance  of  really  clever  women  in 
matters  of  every-day  business.  Women  who  could 
discuss  theosophy  intelligently  were  puzzled  by 
simple  accounts  and  confused  by  quit-claim  deeds ; 
and  some  who  had  large  means  did  not  know  all 
about  the  checks  which  they  drew  so  frequently. 

It  was  to  render  the  girls  under  my  care  more 
intelligent  in  these  matters  that  these  talks  were 
first  prepared ;  hence  the  simplicity  of  statement, 
and  the  explanation  of  even  well-known  technical 
terms.  They  are  now  offered  to  the  larger  audience 
of  the  uninitiated  everywhere,  in  the  hope  that  they 
may  be  of  use  in  dispelling  that  ignorance,  which, 
more  than  their  sex,  is  the  cause  of  the  unfortunate 
issue  of  the  business  affairs  of  so  many  women. 

To  my  friends  in  the  business  world  in  many 
directions,  I  am  indebted  for  helpful  suggestions ; 
especially  in  the  banking  section.  And  my  ac- 
knowledgments are  also  due  to  the  girls  whom  I 


viii  FOREWORD 

have  taught,  whose  questions  and  mistakes  have 
been  most  helpfully  suggestive. 

May  those  who  need  find  the  book,  and  may  it 
fill  the  need ! 

Mary  Aronetta  Wilbur. 

Morristown,  N.J. 


CONTENTS 

CHAPTER   I 
The  Office  of  Banks     .... 


Origin  of  banks ;  historical  survey.   The  four  func- 
tions of  banks. 


CHAPTER  II 

The  Formulas  and  Methods  of  Banking   .     .     ii 

Identification.  What  to  deposit.  Checks,  their 
forms  and  the  reason  for  them.  Forms  of  indorse- 
ment.   Overdrafts.    Certified  checks.    The  stub. 

CHAPTER   III 

Borrower  and  Lender 31 

Notes.  Collateral.  Protests.  Interest.  Bank  fail- 
ures.   Sight  drafts. 

CHAPTER   IV 

Exchange 44 

Clearing  houses.  Foreign  exchange.  A  letter  of 
credit  and  its  uses. 


CONTENTS 


CHAPTER  V 


Other  Forms  of  Banks 57 

Savings  banks  and  lost  pass-books.  Department- 
store  banks.  Penny  provident  societies.  Postal 
savings  banks. 

CHAPTER  VI 

About  Money 66 

Getting  money  in  emergencies.  Various  ways  of 
sending  money  explained.  Mutilated  money.  Old 
bills.     Counterfeits.    Paper  money. 


CHAPTER  VII 

Contracts 81 

Definitions,  unwritten  contracts;  familiar  forms  of 
contracts.  Essentials  of  a  legal  contract.  Who 
may  make  contracts  ?  Contracts  of  minors.  Il- 
legal contracts.  Interference.  Enforcement  of 
contracts. 

CHAPTER   VIII 

Bills  and  Receipts 97 

Credit  defined.  Imprisonment  for  debt.  Mercan- 
tile agencies.  Creditors  and  debtors.  Collection 
of  debts.  Outlawed  bills.  Debts  of  honor.  About 
paying  bills.  Receipts,  the  necessity  for  them,  and 
their  form. 


CONTENTS  xi 

CHAPTER   IX 

Employer  and  Employee log 

Legal  conditions  of  employing  servants.  Grounds 
for  dismissal  of  servants,  and  of  suit  to  recover 
damages.     Service  abroad.     Reciprocal  interests. 

CHAPTER   X 

Our  Business  Relations  with  Railroads  and 
Hotels ii8 

The  passenger's  railroad  contract.  Who  may 
travel  ?  Damages  for  injuries.  Fast  trains.  Stand- 
ing. Baggage  regulations  and  damages.  Stolen 
property.  Hotels,  guests  and  how  chosen.  Illness 
at  an  hotel.  Proprietor's  responsibility  for  losses. 
Guests  and  boarders  defined. 

CHAPTER   XI 

Simple  Bookkeeping 130 

Debit  and  credit.  How  to  keep  an  account.  Classi- 
fication of  accounts.  Vouchers.  Figures.  Assets 
and  liabilities.     Inventories. 

CHAPTER   XII 

On  Sending  Things 140 

By  mail;  freight;  express:  full  directions  and 
cautions.  Parcels-post.  Registered  mail.  Special 
and  Rural  Free  Delivery.    Express  receipts;  re- 


xii  CONTENTS 

covery  of  lost  goods.     "  C.  O.  D."  and  "  Collect " 
packages.     Freight  C.  O.  D.  and  Bills  of  Lading. 


CHAPTER   XIII 

Other  People's  Property i6i 

Treasurerships.  Informal  agency.  Embezzlement. 
Borrowed  property.  Legal  agency,  conditions  and 
limitations.     Kinds  of  agents. 

CHAPTER   XIV 

Taxes  and  Customs 174 

Origin  of  these  duties.  Forms  of  taxes  and  object 
of  taxation.  Customhouses  and  goods  "  in  bond.'* 
Overvaluations  and  "  swearing  off  taxes."  Moon- 
shiners and  smugglers. 

CHAPTER   XV 

The  Use  and  Transference  of  Property  .  .189 

Buying  and  selling.  Mortgaging.  Leasing  or  rent- 
ing. The  conditions  of  these  transactions,  the  laws 
governing  them,  and  cautions  respecting  them. 

CHAPTER  XVI 

Stocks  and  Bonds 214 

Definitions.  Respective  rights  and  responsibilities 
of  their  holders.     Overcapitalization,  and  "  water- 


CONTENTS  xiii 

ing  the  stock."  Par,  and  other  terms  and  values 
explained.  Speculation.  Margins.  "  Bulls,  Bears, 
and  Lambs." 

CHAPTER   XVII 

Wills  and  Estates 228 

Reasons  for  making  a  will.  Heirs  and  next  of  kin. 
Legal  testators.  Wills  and  testaments.  A  valid 
will  and  its  conditions.  Probate.  What  a  man  may 
not  do  in  his  will.  Allowed  conditions.  Executor's 
duties  and  credentials.  Codicils.  Frauds.  Nun- 
cupative wills. 

CHAPTER  XVIII 

Fundamentals  of  Business 242 

The  ethics  of  business.  Honesty  and  honor.  Forms 
of  dishonesty.  Business  habits.  Correct  estimates 
of  values  and  cost.  Loyalty.  Courtesy ;  its  com- 
mercial value  in  buying  and  selling,  in  business 
letters,  in  traveling.     Closing  reflections. 

Appendix  A    .     .    . 259 

Appendix  B 260 

Index 265 


EVERYDAY  BUSINESS 
FOR  WOMEN 

CHAPTER   I 

THE    OFFICE    OF    BANKS 

To  hoard,  to  accumulate  values,  to  lay  up  in  sum- 
mer for  the  need  of  the  winter,  to  make  the  abun- 
dance of  to-day  provide  for  the  possible  want  of 
to-morrow,  —  this  is  esteemed  a  mark  of  superior 
intelligence  in  the  lower  animals,  and  even  among 
the  races  of  men.  The  ant  has  her  granary  under- 
ground, the  bee  her  honeycomb,  the  squirrel  his 
hoard  of  nuts,  and  man  his  bag  of  gold. 

When  primitive  man  began  to  accumulate  he 
followed  the  fashions  and  methods  of  the  lower  ani- 
mals, and  hoarded  his  grain  in  rocky  bins  or  holes 
in  the  ground,  and  dried  his  fish  and  game,  that, 
when  he  needed  food,  he  might  have  it.  But  as 
communities  grew  up,  and  contact  with  others  be- 
gan to  tame  and  civilize  man,  to  regulate  his  desires 
and  increase  his  opportunities  for  securing  the  ne- 
cessities of  life,  his  standards  of  living  were  raised, 
and  he  desired  more  things  and  different  ones  from 
those  which  had  at  first  contented  him.  So,  gradu- 


IIA 


:>.  .'EyERY-DAY   BUSINESS   FOR  WOMEN 

ally  he  evolved  that  system  known  as  the  division 
of  labor  J  whereby  the  man  skilled  in  doing  or  pro- 
curing or  making  one  thing  did  it  for  the  community, 
and  then  exchanged  the  products  of  his  industry 
for  other  articles  that  satisfied  his  wants  or  desires  : 
and  things  acquired  value  according  to  the  amount 
of  desired  things  for  which  they  could  be  readily 
exchanged. 

But  it  was  not  always  convenient  to  bring  the 
man  who  had  only  canoes  to  offer,  in  contact  with 
the  exact  people  who  had  what  he  wanted,  and 
wanted  what  he  had.  And  so  some  clever  individual, 
a  nameless  benefactor  of  society,  suggested  that 
something  that  had  a  value  of  its  own  might  be 
used  as  a  medium  of  exchange ;  then  the  man  with 
canoes  to  sell  could  part  with  a  canoe  for  so  much 
of  this  valuable  medium,  and  exchange  that  with 
the  man  who  had  the  food  he  wanted  to  buy.  Thus, 
in  all  probability,  was  invented  money,  the  medium 
of  exchange  between  buyer  and  seller. 

Some  of  these  early  forms  of  money  are  very  cu- 
rious. Rock-salt  served  the  Abyssinians  for  money ; 
rice  was  the  medium  on  the  Coromandel  shore; 
cocoa  passed  in  aboriginal  Mexico,  olive-oil  among 
the  inhabitants  of  the  Ionian  islands ;  tea  compressed 
into  small  cakes  was  early  Russian  money ;  dates 
circulated  among  the  savages  of  the  African  oases  ; 
values  were  expressed,  and  tithes  and  wages  paid, 


THE  OFFICE  OF  BANKS  3 

in  tobacco  as  late  as  the  early  part  of  the  eighteenth 
century  in  Virginia ;  and  during  the  mulberry  craze 
in  this  country,  about  1837,  mulberry-slips  were 
current  in  Long  Island  at  twelve  and  a  half  cents 
each ;  wheat,  cattle,  and  sheep  were  exchanged 
by  early  Greeks,  Romans,  and  Teutons  ;  wampum- 
shells,  prized  as  ornaments  by  the  Indians,  were  used 
in  early  New  England  transactions ;  iron,  lead,  and 
tin  have  all  had  their  turn  in  serving  as  this  me- 
dium, since  each  possessed  the  quality  of  being  val- 
uable in  itself,  because  it  was  desired  by  every  one. 

Yet  from  the  beginning  gold  has  powerfully 
affected  the  imagination  and  desires  of  men  ;  just 
why  this  was  so,  is  a  theme  for  speculation.  It  al- 
most seems  as  though  it  were  the  embodiment  of 
an  evil  genius,  for  among  savage  and  civilized  alike, 
in  remote  antiquity  and  at  the  present  day,  gold  is 
the  object  of  such  universal  desire  that  no  crime  is 
esteemed  too  great  to  secure  it.  And  since  what  is 
universally  desired  is  everywhere  valuable,  and  can 
be  readily  exchanged  for  food,  raiment,  or  shelter, 
so  man,  as  he  advanced  beyond  the  animals,  hoarded 
gold,  the  symbol  and  representative  of  all  the  things 
he  desired,  instead  of  the  things  themselves. 

Naturally  the  question  arose  where  should  the 
treasure  be  kept,  for  it  was  too  highly  esteemed  to 
be  kept  where  the  grain  and  such  things  had  been 
stored.  The  gold  was  hoarded  in  cleft  trees,  or  holes 


4      EVERY-DAY  BUSINESS  FOR  WOMEN 

in  the  ground,  or  caves ;  or,  later,  in  strong  chests 
of  oak,  iron-bound  and  ponderous ;  or,  if  the  man 
were  too  poor  for  that,  the  old  stocking  came  into 
use,  or  the  pots  or  cans  on  the  shelf,  or  the  inside 
of  a  feather-bed.  As  late  as  the  eighteenth  century, 
Rob  Roy  kept  his  money  in  a  purse,  which  Scott 
describes  as  an  ingenious  contrivance  with  double 
locks,  and  a  small  pistol  inside,  so  cocked  that  any 
unpracticed  attempt  to  open  the  bag  would  dis- 
charge the  pistol. 

But  all  these  contrivances  at  times  proved  un- 
availing to  guarantee  security :  the  buried  treasure 
might  be  accidentally  discovered,  or  the  hider  might 
carry  his  secret  with  him  to  the  grave  and  his  heirs 
be  left  moneyless ;  the  strong-box  might  be  carried 
off  when  the  castle  was  invaded,  the  secret  stone 
in  the  wall  or  floor  might  be  found ;  and  all  the 
other  devices  were  proven  to  be  equally  insufficient 
to  furnish  the  security  demanded.  Then  it  hap- 
pened that,  as  the  nations  advanced  in  civilization, 
certain  men  undertook  to  safeguard  the  gold  and 
silver  of  others,  and  became  bankers  of  deposit ;  we 
find  such  among  the  Romans  and  older  nations, 
and  China  had  a  well-developed  banking  system  in 
1356  A.  D. 

Thus  was  evolved  the  first  function  of  a  modern 
bank,  —  to  furnish  a  safe  place  for  valuables,  chiefly 
money.  As  these  first  bankers  were  usually  men  of 


THE   OFFICE   OF   BANKS  5 

means,  —  for  none  others  would  have  been  trusted, 
—  they  also  loaned  their  own  money  to  the  impe- 
cunious, charging  high  rates  of  interest ;  and  thus 
the  second  function  of  a  bank  was  found,  for  the 
bank  is  a  medium  of  exchange  between  those  who 
have  money  and  those  who  need  it  temporarily  and 
can  ultimately  repay  it.  In  Italy  these  men  usually 
sat  on  a  bench,  or  bancuy  as  the  Italians  call  it,  in 
the  street,  to  transact  business,  and  when  a  man 
failed  his  bench  was  broken,  thus  proclaiming  him 
bankrupt.  From  the  Italian  the  words  bank  and 
banker  were  adopted  into  all  European  languages, 
for  the  Tuscans  and  Venetians  were  the  greatest 
money-dealers  in  Europe.  Banking  was  practiced 
at  Florence  in  the  thirteenth,  possibly  in  the  twelfth 
century;  and  the  money -dealers  of  Florence  were 
held  in  high  repute  as  receivers  on  deposit  and 
lenders  of  money. 

"  The  names  of  the  Bardi,  Accajuoli,  Pitti,  and 
Medici  were  famous  throughout  Europe.  In  1345 
the  Bardi  and  the  Peruzzi,  the  greatest  mercantile 
houses  in  Italy,  failed.  Edward  III  (of  England) 
owed  the  Bardi  nine  hundred  thousand  gold  florins, 
which  his  war  with  France  prevented  him  from  pay- 
ing ;  and  the  King  of  Sicily  owed  them  one  hundred 
thousand  gold  florins ;  the  deposits  of  citizens  and 
strangers  with  the  Bardi  were  five  hundred  and  fifty 
thousand  gold  florins.  The  Peruzzi  were  owed  six 


6      EVERY-DAY   BUSINESS   FOR   WOMEN 

hundred  thousand  gold  florins  by  Edward  III,  and 
one  hundred  thousand  by  the  King  of  Sicily  ;  and 
the  deposits  they  owed  their  customers  were  three 
hundred  and  fifty  thousand  gold  florins.  The  fall  of 
these  two  great  pillars  of  credit  involved  that  of  mul- 
titudes of  other,  smaller  establishments,  and,  says 
Villari,  *  the  community  of  Florence  had  never  been 
thrown  into  such  disorder  before.'  And  thereupon  he 
breaks  out  against  the  folly  of  his  fellow  citizens 
entrusting  their  money  to  the  care  of  others  for  the 
sake  of  gain."^ 

The  inducement  held  out  by  the  bankers  was  an 
offer  to  pay  interest  on  deposits  received,  a  certain 
sum  allowed  for  the  use  of  the  money  according  to 
the  time  and  amount ;  hence  the  old  term  usury  ap- 
plied to  this  sum.  Now  the  term  usury  is  restricted 
to  a  rate  of  interest  in  excess  of  that  which  is  fixed 
by  law. 

In  England  the  goldsmiths  were  the  first  bankers, 
but  the  system  developed  slowly.  It  is  recorded  in 
a  pamphlet  published  in  1676,  and  entitled  **The 
Mystery  of  the  New- Fashioned  Goldsmiths  or  Bank- 
ers Discovered,"  that  "  much  about  the  time  of  the 
civil  commotion,  the  goldsmiths  began  to  receive 
the  rents  of  gentlemen's  estates  remitted  to  town, 
and  to  allow  them,  and  others  who  put  cash  into 
their  hands,   some  interest  for  it,  if  it  remained 

i  Leonard  H.  Courtney,  in  Efuyclojbadia  Britannica. 


THE  OFFICE   OF   BANKS  7 

but  a  single  month  in  their  hands,  or  even  a 
lesser  time.  This  was  a  great  allurement  for  the 
people  to  put  money  into  their  hands,  which  would 
bear  interest  till  the  day  they  wanted  it ;  and  they 
could  also  draw  it  out  by  one  hundred  pounds  or 
fifty  pounds,  etc.,  at  a  time  they  wanted  it,  with 
infinitely  less  trouble  than  if  they  had  lent  it  out 
on  either  real  or  personal  security.  The  conse- 
quence was  that  it  quickly  brought  a  great  quantity 
of  cash  into  their  hands,  so  that  the  chief  or  great- 
est of  them  was  now  enabled  to  supply  Cromwell 
with  money  in  advance,  on  the  revenues,  as  his  oc- 
casion required,  upon  great  advantage  to  them- 
selves." 

But  this  was  only  a  small  part  of  a  bank's  busi- 
ness ;  to-day  its  greatest  function  is  not  the  hand- 
ling of  money,  but  the  manipulation  of  credit.  In 
1 171  the  RepubHc  of  Venice  needed  money,  and 
forced  a  loan  from  its  wealthy  merchants,  agree- 
ing to  pay  four  per  cent  interest  for  the  loan,  which 
was  to  be  in  perpetuity :  that  is  to  say,  the  govern- 
ment would  never  repay  the  principal,  but  would 
pay  this  small  interest  as  a  partial  compensation  for 
thus  forcibly  taking  the  goods  of  its  citizens.  The 
name  of  each  depositor  in  this  government  bank  was 
entered  on  its  credit  books,  with  the  amount  of  his 
deposit.  After  a  while  the  merchants  began  trading 
with  their  credit,  and  found  it  easier  to  trade  by 


8      EVERY-DAY   BUSINESS   FOR  WOMEN 

transferring  a  portion  of  their  credit  at  the  govern- 
ment bank  than  to  wear  out  gold  and  silver  coin  by 
frequent  handling.  The  system  spread  to  other 
cities ;  and  finally  a  Florentine  banker  instituted 
the  system  of  an  exchange  of  credits  with  foreign 
banks ;  so  that  a  merchant  might  deposit  his  funds 
in  London  with  a  banker  there,  and  receive  a  credit 
on  a  German  or  Italian  banker,  which  could  be  con- 
verted into  cash  when  he  was  ready  to  buy  goods 
in  that  country.  He  thus  escaped  the  danger  of 
losing  his  wealth  to  the  robber  barons  or  low-born 
bandits  who  infested  the  highways  and  forests.  So 
was  developed  the  fourth  function  of  a  bank :  to 
provide  for  the  easy  and  safe  transference  of  money 
and  value,  to  be  a  great  bureau  of  exchange. 

In  the  fulfillment  of  its  first  function,  that  of  pro- 
viding a  safe  place  for  money,  the  banks  have  en- 
couraged the  genius  of  the  mechanical  inventor, 
until  to-day  we  have  fire-proof  and  burglar-proof 
safes  and  vaults,  whose  massive  doors  open  only  to 
a  secret  combination  of  numbers  set  for  a  certain 
time,  and  whose  spacious  interiors  would  be  a  mar- 
vel to  the  older  generations  of  bankers,  whose  gold 
was  kept  in  strong-boxes. 

In  fulfilling  its  function  as  a  middleman  between 
borrower  and  lender,  a  bank  gathers  together  idle 
capital,  large  or  small  savings,  from  many  people, 
and  then  lends  it  upon  promissory  notes,  well  se- 


THE  OFFICE  OF   BANKS  9 

cured,  to  captains  of  industry  and  other  responsible 
borrowers. 

As  manipulators  of  credit,  the  banks  issue  bank- 
notes, and  honor  checks,  and  handle  all  forms  of 
representative  money.  And  as  transferrers  of  value, 
or  exchangers,  the  commerce  and  government  of 
the  world,  as  well  as  the  ease  and  convenience  of 
travelers,  depend  in  large  measure  upon  them. 

There  is  a  large  and  interesting  history  of  bank- 
ing, which  it  is  not  necessary  to  detail  here ;  and  the 
foregoing  sketch  has  as  its  only  object  to  demon- 
strate how  gradual  and  natural  has  been  its  evolu- 
tion from  a  far-distant  past.  Institutions  are  not 
born  full-fledged,  and  the  perfection  of  the  system 
of  banks  to-day  is  the  embodiment  of  the  experi- 
ments of  the  past,  and  a  true  "survival  of  the  fit- 
test." 

And  as  in  our  own  times  the  operations  of  banks 
have  become  more  far-reaching,  so  we  may  hope  in 
the  future  for  other  and  more  diversified  fields  of 
usefulness  for  this  great  system.  Already  banks  are 
playing  their  part  in  international  politics ;  and  wars 
can  last  only  as  long  as  great  banks  will  finance 
them,  by  buying  the  bonds  of  the  belligerents ;  the 
bank  account  of  the  Dictator  settles  many  of  the 
small  South  and  Central  American  revolutions. 
Great  bankers  of  several  countries  meet  to  arrange 
for  financing  such  projects  as  building  trolley  tow- 


lo    EVERY-DAY  BUSINESS   FOR  WOMEN 

ing-lines  on  the  Nile,  or  railroads  in  Persia.  So  the 
money  that  was  made  in  the  middle  United  States 
may  be  found  giving  energy  and  life  to  enterprises 
in  Africa  and  Asia.  All  this  we  welcome  as  tending 
not  only  to  a  better  understanding  between  nations, 
but  to  the  growth  of  fraternal  feeling ;  for  it  is  still 
true  that  "  where  your  treasure  is,  there  will  your 
heart  be  also." 


CHAPTER  II 

THE  FORMULAS  AND  METHODS  OF  BANKING 

Before  entering  upon  a  general  discussion  of  the 
functions  of  a  bank,  let  us  diverge  a  little  and  con- 
sider it  in  its  relations  to  ourselves.  Suppose  we 
have  saved  money,  or  have  had  it  given  to  us  in  the 
form  of  checks,  or  sent  to  us  in  express  receipts  or 
postal  notes,  or  sight  drafts,  or  foreign  exchange,  or 
promissory  notes.  What  shall  we  do  with  it  ?  Al- 
most everybody  has  some  faint  idea  of  banking,  but 
for  the  sake  of  the  few  totally  uninitiated  let  us  as- 
sume ignorance  for  all. 

The  first  step  is  to  go  to  the  bank,  accompanied 
by  a  friend  who  is  known  to  the  officials  ;  this  friend 
introduces  you,  and  when  your  signature  and  ad- 
dress are  entered  in  the  bank's  book,  his  name  is 
entered  also  as  your  introducer.  This  is,  technically, 
identification,  and  though  it  seems  a  simple  matter 
it  is  important,  and  often  difficult  to  obtain.  Ima- 
gine yourself  in  a  strange  city,  wishing  to  transact 
business  with  a  bank;  without  identification  this 
would  be  impossible,  for  generally  a  bank  will  not 
cash  checks  nor  receive  deposits  from  strangers  to 
it.  The  following  case  came  under  my  own  obser- 


12     EVERY-DAY  BUSINESS   FOR  WOMEN 

vation.  A  gentleman  from  a  small  inland  town, 
where  he  was  a  prominent  citizen,  came  to  Wash- 
ington as  a  medical  examiner  in  the  Pension  Office. 
Wishing  to  open  a  bank  account,  he  entered  a  bank, 
and  tried  to  deposit  cash  and  checks ;  but  the  bank 
refused  to  receive  them.  Later  he  had  money  sent 
by  express,  but  the  express  company  declined  to  pay 
it ;  then  it  was  sent  him  by  telegraph,  and  the  West- 
ern Union  Company  demanded,  Who 's  Who  ?  The 
poor  man  was  nearly  desperate,  when  he  fortunately 
met  on  the  street  a  former  classmate  of  his  son's, 
who  had  been  a  visitor  at  his  house.  The  young 
man's  father  promptly  performed  the  necessary  in- 
troduction, and  then  all  these  representations  of 
money  immediately  became  valuable. 

Another  interesting  case  was  that  of  a  prominent 
judge  in  western  Massachusetts,  who  was  in  another 
town  on  business.  Before  leaving  town  he  found 
that  he  needed  more  money,  but  of  course  the  bank 
required  identification ;  the  teller  agreed  finally  to 
accept  documentary  evidence,  so  the  judge  went  to 
the  nearest  news-stand  and  bought  the  last  issue  of 
an  illustrated  weekly  in  which  his  picture  had  ap- 
peared, and  presented  this  as  evidence  of  his  iden- 
tity ;  the  likeness  was  recognized,  and  the  check  was 
promptly  cashed. 

Sometimes  when  one  wishes  simply  to  cash  a 
check,  and  it  is  not  convenient  for  a  friend  to  go 


FORMULAS   OF  BANKING  13 

to  the  bank,  he  may  write  under  the  indorsement 
the  words  "  indorsement  guaranteed,"  and  sign  his 
name.  This  the  bank  accepts,  as  your  friend  has 
thus  assumed  the  responsibility  for  the  genuineness 
of  your  check. 

It  seems  strange  to  persons  who  have  had  no 
business  experience  that  this  point  should  be  so 
emphasized ;  but  the  craftily  wicked  often  imper- 
sonate other  people,  and  bankers  must  be  wary.  Few 
of  us  are  in  the  situation  of  the  old  woman  who 
awoke  from  her  nap  to  find  such  startling  changes 
in  her  costume  that  she  doubted  her  own  identity, 
and  was  much  disturbed  thereby,  until  she  bethought 
herself  of  an  identifier,  and  exclaimed,  — 

If  I  be  I,  as  I  think  I  be, 

There 's  my  little  dog  Tray,  and  he  '11  know  me. 

And  the  bank  cashier  always  wants  to  see  "the 
little  dog  Tray." 

It  should  be  noted  here  in  passing,  that  savings 
banks  make  an  exception  to  this  general  rule,  and 
will  receive  deposits  from  strangers  without  ques- 
tioning the  identity  of  the  depositor. 

The  introduction  accomplished  to  the  satisfac- 
tion of  all  concerned,  the  cashier  then  gives  you  a 
small  printed  slip,  like  the  following,  and  asks  you 
to  fill  it  out. 


14    EVERY-DAY  BUSINESS  FOR  WOMEN 

Deposited  with 
The  First  National  Bank 
of  Morristown,  N.  J. 
By  Jane  Caldwell 

October  27,  1908 


Bills 

10 

00 

Gold 

5 

00 

Silver 

50 

Check  New  York 

25 

00 

Boston 

125 

GO 

165 

50 

In  the  appropriate  spaces  on  this  slip  you  write 
your  name  and  the  date,  and  opposite  the  various 
items,  the  amount  of  each  which  is  being  deposited, 
listing  each  check  separately ;  then  add  the  whole 
amount  and  present  it  with  the  coin,  cash,  and 
checks  to  the  cashier  or  teller.  All  checks  which 
you  deposit  must  bear  your  name  on  the  back ; 
this  writing  is  called  "indorsing  the  check"  ;  and 
as  the  word  comes  from  Latin  words  meaning  on 
the  back^  it  is  manifestly  superfluous  to  speak  of 
"indorsing  a  check  on  the  back." 

The  teller  then  gives  you  a  small  book  bearing 
this  inscription,  for  illustration :  — 

The  First  National  Bank 

Morristown,  N.  J. 

In  account  with 

Jane  Caldwell 


FORMULAS   OF  BANKING  15 

and  inside,  on  the  left,  or  debit,  side  writes  :  — 

October  27,  1908  165.50 

This  book  is  called  the  pass-book  or  deposit-book, 
and  in  it  deposits  are  entered  as  made :  the  bank 
thus  acknowledging  that  it  is  indebted  to  the  de- 
positor for  so  much  money.  It  is  a  receipt  from  the 
bank ;  consequently  it  is  a  book  to  be  kept  carefully, 
for  should  the  bank  fail,  or  its  books  be  lost,  this 
might  become  the  only  evidence  of  its  indebted- 
ness to  you.  When  one  remembers  that  the  pass- 
book may  be  needed  as  legal  evidence,  it  can  readily 
be  seen  that  only  the  bank  official  should  write 
in  it.  I  have  known  girls  who,  when  they  had  for- 
gotten to  bring  the  book  with  them  at  the  time  of 
making  a  deposit,  made  the  entry  themselves,  on 
their  return  home.  Such  a  proceeding  would  make 
the  book  valueless  as  evidence  of  the  bank's  in- 
debtedness. We  do  not  sign  receipts  for  the  money 
we  pay  others,  neither  should  we  make  entries  in 
pass-books,  which  are  our  receipts  from  the  bank. 
Many  people  think  that  checks  or  cash  are  the 
only  things  that  can  be  deposited  in  banks.  This  is 
far  from  the  case.  One  may  make  a  general  state- 
ment and  say  that  anything  that  represents  value, 
and  is  transferable,  may  be  deposited.  This  would 
include  post-office  money-orders;  various  forms  of 
commercial  paper,  such  as  sight  drafts ;  bond-cou- 


i6     EVERY-DAY   BUSINESS   FOR  WOMEN 

pons  and  express-company  drafts  or  money-orders ; 
all  that  is  necessary  is  to  indorse  them  as  one  would 
checks  and  list  them  for  regular  deposit. 

Having  thus  put  the  money  safely  into  the  bank, 
the  next  question  is  how  to  draw  it  out.  Most  of 
us  know  enough  to  reply,  **  By  checks,"  and  for  this 
purpose  a  check-book  was  given  us  when  we  de- 
posited our  money  ;  and  most  of  us  know  also  that 
we  can  draw  out  only  as  much  as  we  have  put  in. 
There  is  an  amusing  story  told  of  a  lady,  who  upon 
receiving  word  from  the  bank  that  her  account  was 
overdrawn,  exclaimed,  "But  that  is  impossible,  for 
my  check-book  is  still  half  full  of  checks."  The 
error  of  the  lady  was  due  to  the  fact  that  when  she 
began  a  bank  account  it  was  taken  for  granted  that 
she  knew  all  about  banking.  Now  an  exhaustive 
treatise  on  checks  would  be  both  tiresome  and  un- 
necessary, but  there  are  some  facts  about  checks 
which  every  one  should  know. 

The  word  itself  is  a  contracted  form  of  exchequer 
—  a  place  where  government  finances  were  cared 
for ;  and  in  England  the  word  is  usually  spelled 
cheque,  thus  retaining  the  suggestion  of  its  origin. 
Now  a  check,  pure  and  simple,  is  an  order  upon  a 
bank  to  pay  a  specified  amount  of  money  to  a  speci- 
fied person  or  his  order,  and  must  bear  the  date  of 
the  order,  and  the  signature  of  the  drawer  ;  the 
omission  of  any  of  these  items  makes  the  cheeky 


FORMULAS   OF   BANKING  17 

technically  imperfect.  Let  us  examine  these  items 
in  detail  and  find  the  underlying  reasons  for  their 
use ;  for  it  may  be  accepted  as  an  established  fact, 
that  wherever  we  find  a  fixed  and  settled  usage 
there  is  always  some  reason  for  it. 
Let  us  draw  a  model  check  :  — 

The  number  in  the  upper  left-hand  corner  indicates 
the  number  of  checks  which  have  been  drawn  since 
the  account  was  opened  at  the  bank;  and  as  the 
stub  bears  the  same  number,  it  becomes  a  conve- 
nient way  of  identifying  the  canceled  checks  when 
they  are  returned  to  the  depositor  for  verification. 
The  stub  referred  to  is  the  slip  left  in  the  check- 
book when  a  check  has  been  torn  out,  and  should 
contain  a  complete  memorandum  of  the  particulars 
of  the  check  ;  unless  this  is  carefully  kept,  one  will 
never  know  the  state  of  her  bank  account  except 
by  inquiry  at  the  bank ;  and  this  is  a  humiliating 
confession  of   ignorance  or  carelessness.    Careful 


i8     EVERY-DAY  BUSINESS   FOR  WOMEN 

people  make  the  entry  on  the  stub  before  drawing 
the  check.  All  deposits  should  be  promptly  entered 
on  the  stub,  and  added  to  the  balance  there  shown ; 
and  the  amount  of  the  check  drawn  should  be  sub- 
tracted. 

Although  some  banks  will  accept  an  undated 
check  if  the  drawer  or  indorser  is  known  to  them, 
yet  the  date  is  of  importance  for  several  reasons. 
Checks  dated  on  Sunday  or  a  legal  holiday  are  in- 
valid in  many  states ;  a  check  that  has  been  care- 
lessly dated  ahead  cannot  be  cashed  before  the  time 
arrives.  In  Ibsen's  "  Doll's  House  "  he  makes  the 
date  of  a  check  play  an  important  part ;  for  when 
Nora  forges  her  father's  name  on  a  check  to  obtain 
funds  for  her  sick  husband,  the  date  betrays  her, 
as  her  father  had  died  on  the  previous  day,  a  fact 
of  which  she  had  not  been  informed. 

In  writing  the  amount  of  your  credit  at  the  bank 
which  you  desire  to  have  transferred  to  another  per- 
son, there  are  certain  forms  to  be  followed  ;  the  sum 
taken  in  our  illustration  (25^Yioo)  is  written  in  words 
in  the  long  space,  and  a  wavy  line  drawn  from  the 
point  where  the  words  end  to  the  printed  word 
"  Dollars  "  ;  it  is  written  in  figures  in  the  small  space 
at  the  lower  left-hand  corner.  If  the  check  had  been 
drawn  for  twenty  dollars,  it  would  have  been  writ- 
ten thus : — 

Twenty Dollars 


FORMULAS   OF  BANKING  19 

Some  very  good  business  people  would  write  such 
an  amount  **  Twenty  and  "Vioo,"  but  banks  prefer 
the  first  form,  as  '^'^/m  is  liable  to  be  misread  "^^/m. 
The  amount  expressed  in  figures  and  words  must 
be  exactly  the  same,  as  a  check  will  not  be  cashed 
by  a  bank  when  the  figures  call  for  one  amount  and 
the  words  for  another.  Banks  are  slow  to  accept 
a  check  that  has  been  altered  in  any  particular,  al- 
though it  be  only  a  change  of  date;  for  any  altera- 
tion gives  rise  to  the  suspicion  that  the  check  has 
been  tampered  with,  and  banks  must  be  cautious  in 
this  regard. 

It  is  of  the  utmost  importance  that  the  entire 
space  left  for  the  amount  of  a  check  should  be  filled, 
either  by  the  words  or  a  line ;  should  the  amount 
be  written  thus.  Fifty  Dollars, 
it  would  be  easy  for  a  clever  penman  to  insert  the 
words  "One  Hundred  and  "  so  that  the  check  would 
be  cashed  for  one  hundred  and  fifty  dollars.  This 
operation  is  called  "raising  a  check,"  and  is  com- 
paratively easy  to  efifect,  because  the  signature  is 
genuine,  and  the  drawer  has  no  redress  from  the 
bank.  The  better  plan  is  to  write  the  amount  at  the 
left-hand  end  of  the  line,  and  fill  all  the  remaining 
space  with  a  wavy  line,  or  else  draw  a  line  before 
and  after  tjihe  words,  thus : Fifty  Dollars . 

Sometimes  on  leaving  home  a  man  will  give  his 
wife  a  number  of  checks-,  signed  and  made  payable 


20     EVERY-DAY  BUSINESS   FOR  WOMEN 

to  her  order,  with  the  amount  left  blank,  to  be  filled 
in  as  occasion  may  require :  this  is  a  sort  of  "  carte 
blanche  "  that  is  a  token  of  great  confidence,  be- 
cause it  places  his  whole  bank  account  at  her  dis- 
posal. 

Sometimes  one  has  occasion  to  draw  a  check  for 
an  amount  less  than  one  dollar,  although  this  should 
be  avoided  wherever  possible,  as  it  gives  the  banker 
as  much  trouble  to  care  for  a  one-dollar  check  as 
for  one  for  five  thousand.  During  the  last  term  of 
office  of  Mr.  Cleveland,  a  Scotch  admirer  sent  him 
a  pair  of  genuine  Scotch  woolen  gloves.  When  they 
passed  through  the  Baltimore  Custom  House,  the 
duty  of  twelve  cents  was  paid  by  another  admirer,  as 
a  courtesy.  President  Cleveland  promptly  sent  him  a 
check  for  the  amount :  the  recipient,  however,  never 
cashed  the  check,  but  kept  it  as  a  souvenir  auto- 
graph. When  one  has  occasion  to  draw  such  a  check, 
the  line  should  read,  "Twelve  Cents Dollars." 

In  writing  the  name  of  the  person  to  whom  the 
check  is  to  be  paid,  great  care  should  be  exercised. 
Titles  of  honor,  of  form,  of  courtesy,  should  never 
be  used.  It  is  equally  bad  form,  in  a  business  as- 
pect, to  make  out  a  check  to  Rev.  James  Smith  or 
to  Mrs.  Nora  Tyler :  they  should  read  respectively 
"James  Smith,"  "  Nora  Tyler."  Should  the  check, 
however,  be  intended  for  a  lady  whose  own  name 
you  do  not  know,  it  may  be  necessary  to  write  it 


FORMULAS   OF  BANKING  21 

thus :  "Mrs.  Thomas  Stevens."  Nor  should  checks  be 
written  simply  "Miss  Brown,"  without  any  initials. 
The  reason  for  this  rule  is  that  a  check  is  a  business 
paper,  and  as  such  recognizes  the  individual  only  as 
a  legal  entity,  and  not  as  a  factor  in  society.  Since 
this  is  the  business  rule,  there  is  no  discourtesy  in 
designating  the  most  dignified  lady  by  her  given 
name,  on  a  check.  This  is  the  beautiful  democracy 
of  business. 

In  signing  checks  be  careful  to  use  the  signature 
— the  sign-manual  —  that  you  used  in  registering 
on  the  bank's  book.  Do  not  sign  checks  one  day, 
"J.  C.  Marsh,"  and  another  day,  "  Jeannette  Chand- 
ler Marsh,"  when  your  registered  signature  is 
"Jeannette  C.  Marsh."  Form  should  be  invariable, 
and  the  penmanship  as  nearly  uniform  as  possible. 
Your  signature  represents  yourself  ;  one  would  n't 
expect  to  be  recognized  if  one  masqueraded ;  and  a 
variable  signature  makes  it  hard  for  the  teller  to 
protect  the  depositor  from  forgeries  of  her  name 
by  dishonest  persons.  The  signature  should  be 
easily  legible  ;  it  is  no  sign  of  greatness,  or  clever- 
ness, or  decided  character  to  have  an  undecipher- 
able signature.  If  it  is  desired  to  have  a  curious- 
looking  collection  of  marks  to  represent  one's  self, 
get  a  hieroglyphic  seal  and  stamp  the  checks  ;  but 
if  one  really  wants  people  to  know  who  is  signing 
the  checks,  let  the  writing  be  legible.  To  many 


22     EVERY-DAY  BUSINESS   FOR  WOMEN 

people  a  careless,  slovenly,  or  illegible  signature  is 
very  distasteful ;  it  seems  to  indicate  a  lack  of  self- 
respect,  a  want  of  that  amour  propre  which  sane, 
educated,  well-bred  people  should  have.  Moreover 
bank  tellers  say  that  the  simplest  and  most  legible 
signatures  are  the  hardest  for  forgers  to  imitate. 

Before  a  check  can  be  cashed  it  must  be  in- 
dorsed (unless  it  is  payable  to  "  bearer "  or  to 
"  cash  ") ;  that  is  to  say,  the  name  of  the  payee,  or 
person  to  whose  order  it  is  made  payable,  must  ap- 
pear on  the  back,  and  in  exactly  the  form  it  bears 
on  the  front  of  the  check.  If  one's  name  has  been 
written  in  full,  as  "  Jeannette  Chandler  Marsh,"  the 
indorsement  must  not  read,  "J.  C.  Marsh,"  even 
though  the  other  name  is  a  signature  which  one 
never  uses.  Sometimes,  through  accident  or  igno- 
rance, the  name  is  misspelled  on  a  check :  the  in- 
dorsement must  then  be  spelled  in  the  same  way ; 
but  when  it  is  deposited,  write  under  that  your  usual 
bank  signature^  Custom  prescribes  that  the  indorse- 
ment should  be  across  the  left-hand  end  of  the 
check,  and  at  least  an  inch  from  the  top,  to  allow 
the  signature  to  be  seen  when  it  is  caught  by  the 
clip.  The  simple  writing  of  the  name  is  known  as 
an  indorsement  in  blank  ;  a  check  so  indorsed  can 
be  collected  by  any  one  who  finds  it,  as  easily  as  if 
it  came  honestly  into  her  possession.  For  indorsed 
checks  circulate  as  money,  and  often  bear  many 


FORMULAS   OF  BANKING  23 

indorsements  before  they  are  cashed  or  deposited. 
For  this  reason  it  is  better  not  to  indorse  checks 
until  one  reaches  the  bank.  This  indorsement  in 
blank  is  not  the  safest  form  of  indorsement,  espe- 
cially if  one  wants  to  transfer  the  payment  of  the 
check  to  some  other  party.  What  is  termed  a  full 
indorsement  is  then  used.  This  consists  in  writing 
across  the  upper  left-hand  end  of  the  back  of  the 

check  the  words,  "  Pay  to  the  order  of " 

and  signing  the  name ;  a  check  so  indorsed  can  go 
safely  by  mail.  In  sending  checks  by  mail  to  a 
bank  for  deposit,  the  safest  way  is  to  make  the 
check  payable  to  the  bank  to  which  it  is  sent,  by 
a  full  indorsement. 

In  accepting  an  indorsed  check  from  another  party, 
and  adding  one's  signature  when  it  is  deposited, 
one  becomes  liable  for  the  check,  and  stands  sponsor 
for  the  good  faith  and  financial  ability  of  the  other 
parties  whose  names  appear  on  the  check.  Should 
the  bank  on  which  it  was  drawn  fail  before  this 
check  reached  it  from  the  bank  in  which  you  had 
deposited  it,  your  bank  would  call  on  you  to  refund 
the  amount  you  had  received  on  it  in  cash  or  credit, 
plus  the  cost  of  protest.  In  turn  you  would  call  on 
the  party  from  whom  you  received  it,  for  the  funds 
you  had  advanced,  and  so  on  until  the  original 
drawer  of  the  check  was  reached,  and  upon  him 
would  fall  the  loss  for  the  bank's  failure.  The  rea- 


24    EVERY-DAY  BUSINESS  FOR  WOMEN 

son  for  this  course  of  action  is  that,  when  the  check 
was  deposited,  your  account  was  credited  with  that 
amount :  now,  if  it  is  returned  as  of  no  value,  the 
bank  deducts  from  your  account  the  amount  which 
this  check  had  added  to  it.  If  this  check  had  been 
given  you  in  payment  of  a  bill,  then  the  bill  would 
be  still  unpaid,  and  the  debtor  should  pay  again. 

If  a  check,  indorsed  or  unindorsed,  should  be  lost 
or  stolen,  notice  of  that  fact,  together  with  all  the 
particulars  of  the  check,  should  be  sent  at  once  to 
the  bank  on  which  it  was  drawn,  with  a  request  that 
payment  thereon  be  stopped.  Then,  when  it  was 
presented  there,  payment  would  be  refused,  and  so 
the  first  step  taken  in  finding  the  dishonest  party : 
but  you  would  not  suffer  the  loss,  as  the  notice  to 
the  bank  has  enabled  it  to  protect  the  drawer's  ac- 
count from  this  check  which  you  had  dishonored. 

When  for  any  reason  a  bank  protests  a  check,  a 
notice  like  the  following  is  sent  to  every  bank  or 
individual  whose  name  appears  as  indorser  of  it ; 
the  form  of  this  notice  varies  slightly  in  different 
states. 

$20.00  MoRRiSTOWN,  N.  1,^  January  27,  1910. 

You  will  please  take  notice  that  a  check,  made  by 
William  Roe  to  the  order  of  Jane  Roe,  for  Twenty 
Dollars,  dated  Morristown,  N.  J.,  January  25,  19 10, 
payable  at  The  Morristown  Trust  Company,  indorsed 


FORMULAS   OF   BANKING  25 

by  you,  was  after  due  presentment /r^/^j-/^^  this  evening 
for  non-payment,  and  the  holder  looks  to  you  for  the 
payment  thereof. 

To John  Doe, 

Notary  Public. 

Some  banks  refuse  payment,  and  protest  checks 
of  their  own  customers  who  may  have  overdrawn 
their  accounts  carelessly  or  purposely.  But  gener- 
ally a  bank  will  *'  honor  the  check,"  as  the  phrase 
runs, —  that  is,  will  pay  it,  and  then  send  the  cus- 
tomer a  notice  of  this  sort:  — 

Dear  Sir  :  Your  account  at  this  bank  appears  over- 
drawn by  the   amount  of Dollars  and 

cents.  Please  call  and  make  a  deposit  to  cover  the  same 
before  noon  to-morrow. 

And  this  notice  must  be  heeded  or  one's  credit 
at  the  bank  is  lost.  It  is  to  avoid  such  unpleasant 
notices  that  one's  check-book  should  be  kept  care- 
fully balanced,  so  that  at  a  glance  one  can  know  the 
exact  amount  in  bank. 

Sometimes  in  making  large  purchases  of  land  or 
houses  or  bonds,  the  request  will  be  made  that  the 
amount  be  paid  by  certified  check.  This  is  very  easy 
to  obtain  :  draw  the  check  properly,  then  take  it  to 
the  bank,  and  ask  the  cashier  to  certify  it.  This  he 
proceeds  to  do  by  first  examining  your  account  on 


26     EVERY-DAY  BUSINESS   FOR  WOMEN 

the  bank's  ledger.  If  this  is  found  ample  to  pay 
the  check,  he  writes  across  the  upper  end  of  the 
face  of  the  check,  "  I  certify  that  this  check  is  good 
for  [naming  the  amount],"  and  signs  the  statement 
as  cashier.  Certified  checks  are  required  for  these 
transactions  because  such  a  check  is  as  good  as 
money ;  for  all  the  assets  of  a  bank  are  behind  this 
certification  by  its  cashier,  who  acts  as  its  agent  : 
moreover,  payment  cannot  be  stopped  on  a  certified 
check. 

The  uses  of  checks  are  many  and  various.  Be- 
sides the  primary  one  of  serving  as  a  convenient 
way  of  drawing  on  one's  credit  at  the  bank  for  sums 
to  suit  one's  needs,  they  furnish  also  an  admirable 
medium  for  the  payment  of  bills.  They  can  be 
drawn  for  the  exact  amount  of  the  bill,  thus  avoid- 
ing the  trouble  of  making  change;  and  they  also 
serve  the  useful  purpose  of  receipts  which  recount 
day,  and  sum,  and  to  whom  paid,  and  are  almost 
incontestable  evidence  of  the  payment  of  a  bill. 

Banks  usually  close  early  on  Saturday,  and  ear- 
lier on  other  days  than  one's  emergencies  would 
render  necessary :  in  such  a  case  one  can  obtain 
money  on  a  check  if  one  can  find  a  shopkeeper  or 
friend  who  will  cash  it.  Some  people  put  checks  to 
a  curious  use,  and  apparently  keep  their  accounts 
by  this  means.  A  bank  teller  told  of  a  man  who 
always  paid  his  employees  by  checks,  which  they 


FORMULAS  OF  BANKING  27 

indorsed,  and  which  he  then  cashed  for  them  ;  his 
object  must  have  been  to  have  receipts  for  the 
money,  and  he  took  this  method  instead  of  having 
them  sign  the  pay-roll. 

When  a  check  which  has  been  sent  for  goods 
which  could  not  be  supplied,  is  returned,  or  for  any 
other  reason  comes  back  unpaid  to  the  original 
drawer,  its  proper  disposal  becomes  a  question.  The 
best  way  is  to  destroy  the  check,  and  on  the  stub  of 
the  check-book  make  a  credit  entry  by  these  words  : 
"By  check  no.  112  returned,  $30,"  or  whatever  the 
number  and  amount  may  really  be. 

The  final  word  about  checks  is  that  which  con- 
cerns their  return  to  the  original  drawer.  At  least 
once  in  three  months  the  pass-book  should  be 
taken  to  the  bank  and  left  there  to  be  balanced. 
After  a  few  days  it  will  be  returned,  together  with 
all  the  checks  which  the  bank  has  cashed,  and 
which  the  bank  terms  vouchers.  Now  what  do  we 
find  in  the  pass-book.?  The  left-hand  side  is  un- 
changed, except  that  the  amounts  of  our  deposits 
have  been  added  together ;  but  on  the  right-hand 
side,  which  is  the  bank's  credit  side,  we  find  a  list 
of  items  corresponding  to  the  amounts  for  which 
the  inclosed  checks  were  given.  These  are  added 
in  pencil,  and  underneath  is  a  line  in  red  ink  which 
reads,  for  example,  "Dec.  3.  Balance  200.52." 
This  amount  added  to  the  checks  equals  the  sum 


28     EVERY-DAY  BUSINESS   FOR  WOMEN 

of  our  deposits,  and  so  the  two  sides  of  the  book 
balance.  This  balance  is  then  transferred  to  the 
other  side,  as  if  it  were  a  new  deposit,  and  the  ac- 
count takes  a  fresh  start. 

This  was  the  earlier  practice  and  is  still  followed 
in  many  places ;  but  with  the  introduction  of  adding 
machines  this  has  been  largely  superseded  in  city 
banks.  In  some  it  is  the  custom  to  inclose  a  type- 
written list  of  the  amounts  of  all  checks  returned, 
and  their  sum-total,  and  to  stamp  on  the  book  the 
words  "Inclosed  list  —  Vouchers  returned,"  and 
treat  the  balance  as  above  stated.  In  others,  the 
deposits,  or  credits,  are  added,  and  the  left-hand 
page  stamped, — 


Total  credits 

Less  canceled  vouchers  as  per  list  herewith 
Balance 


In  this  form  the  right-hand  page  is  left  blank.  Still 
other  banks  use  statement  envelopes  in  which  the 
checks  are  returned,  and  reserve  the  bank-book 
solely  for  the  entry  of  deposits.  These  various 
forms  of  bank  accounting  are  matters  of  choice 
or  convenience,  and  the  essential  principle  is  the 
same :  that  the  bank  thereby  presents  its  account 
to  the  depositor  of  what  it  has  received  from  her 
and  paid  out  upon  her  order. 

After  checking  off  the  items,  one  should  take 


FORMULAS   OF  BANKING  29 

the  checks  and  compare  them  with  the  stubs  ;  if  all 
the  checks  drawn  have  been  cashed,  the  check-book 
should  show  the  same  balance  that  the  pass-book 
does ;  if  it  does  not,  then  you  have  made  a  mistake 
somewhere  in  your  additions  or  subtractions,  or  in 
transferring  the  amount  from  one  page  to  another. 
But  suppose  the  checks  have  not  all  been  re- 
turned, what  then  ?  In  that  case,  take  note  of  the 
unreturned  checks,  add  their  amounts,  and  subtract 
the  sum  from  the  bank  balance ;  and  if  your  arith- 
metic has  been  correct  pass-book  and  check-book 
will  agree.  On  the  stub  make  an  entry  like  this, 
supposing  the  amount  is  $4^ :  — 

Dec.  3.  Bank  balance  $200.52 

By  checks  #13,  90,  91,  not  returned       157-52 

True  balance  $43.00 

These  returned  checks  should  be  carefully  kept, 
fc^r  they  are  your  receipts  for  bills,  memoranda  for 
accounts,  and  are  often  interesting  for  the  indorse- 
ments they  bear.  Every  person  through  whose 
hands  they  have  passed  has  indorsed  them  ;  every 
bank  has  put  its  indorsing  stamp  upon  their  pa- 
tient backs ;  and  it  is  most  interesting  to  trace  the 
journeys  that  some  of  these  bits  of  paper  have  made. 
From  one  end  to  the  other  of  a  vast  country  they 
sometimes  go,  taking  the  place  of  money  :  valueless 
in  themselves  intrinsically,  and  accepted  only  be- 


30     EVERY-DAY  BUSINESS   FOR  WOMEN 

cause  each  one  who  received  them  believed  in  the 
square  dealing,  the  honesty,  and  the  integrity  of 
the  giver.  For  our  whole  system  of  checks,  with  all 
its  convenience,  rests  upon  the  foundation  of  mu- 
tual confidence  in  business. 


CHAPTER  III 

BORROWER   AND   LENDER 

Perhaps  the  greatest  change  that  banks  have 
effected  in  the  business  world  is  the  more  rapid 
circulation  of  capital.  The  proverb  that  "  the  nim- 
ble sixpence  overtakes  the  slow  shilling  "  expresses 
this  view,  that  money  increases  its  value  by  being 
kept  in  circulation.  Men  no  longer  count  wealth  by 
the  number  of  gold  pieces  they  have  hoarded  in  a 
strong  chest,  but  by  the  number  of  stocks  and 
bonds  which  they  own  and  on  which  interest  ac- 
crues, or  by  the  deeds  and  mortgages  they  possess, 
and  the  interest-bearing  promissory  notes  they  hold 
for  payment.  All  of  which  implies  a  ready  inter- 
change of  values  between  men.  But  there  are  also 
other  forms  of  investment  which  demand  more 
money  than  any  one  individual  wants,  or  is  able,  to 
risk  on  a  venture  ;  and  these  are  fostered  by  banks. 
The  small  sums  deposited  by  many  people  in  a  bank 
make  a  goodly  sum  in  the  aggregate;  so  that  a 
bank  with  twenty-five  hundred  customers  may  have 
deposits  of  two  and  a  half  million  dollars.  What 
should  the  bank  do  with  this }  hold  it  in  its  vaults 
until  called  for  ?  In  that  event  the  customers  would 


32     EVERY-DAY  BUSINESS   FOR  WOMEN 

have  to  pay  the  expense  of  running  the  bank,  build- 
ing the  vaults,  and  caring  for  this  great  wealth. 
Experience  has  taught  bank  officials  that  only  a 
small  proportion  of  the  sums  deposited  is  ever 
called  for  at  one  time  :  in  New  York  state  the  law 
requires  the  banks  of  the  city  of  New  York  to  keep 
on  hand  fifteen  per  cent  of  their  deposits ;  and 
banks  outside  the  city  need  keep  only  ten  per  cent 
on  hand.  This  amount  is  kept  in  cash  in  the  vaults, 
and  the  balance  is  loaned  on  notes  or  mortgages, 
or  invested  in  safe  bonds,  or  used  in  financing  great 
undertakings  which  promise  great  returns. 

It  is  from  the  profit  made  on  such  investments 
that  the  bank's  expenses  are  paid.  It  may  seem  un- 
fair that  banks  should  make  so  much  money  by 
the  use  of  funds  for  which  they  pay  the  depositor 
no  interest,  or  at  best  a  very  small  interest :  but 
the  convenience  of  having  money  safely  kept  until 
called  for,  and  the  great  ease  with  which  it  can  be 
drawn  out  by  checks,  thus  providing  him  with  an 
easy  and  safe  transference  of  value  to  distant  points, 
more  than  compensates  the  customer. 

It  is  an  advantage  to  a  community  to  have  even 
the  small  sums  gathered  and  loaned  carefully,  for 
there  are  times  when  some  men  need  money  but 
do  not  have  it,  and  others  have  it  but  do  not  need 
it ;  and  between  these  two  the  bank  acts  as  inter- 
mediary. 


BORROWER  AND   LENDER  $3 

The  usual  form  of  borrowing  money  from  a  bank 
is  hy  promissory  note.  Application  is  made  to  the 
bank  by  the  party  desiring  it ;  and  the  first  question 
asked  is,  "  What  security  can  you  give  ?  "  That  is 
to  say,  how  can  you  make  us  sure  that  we  shall  re- 
ceive our  money  again  ?  In  some  cases  stocks  and 
bonds  which  have  a  good  market  value,  and  can  be 
readily  sold  for  cash,  are  given  to  the  bank  to  keep 
until  the  loan  is  paid.  Such  papers  are  then  termed 
collateral  security  ;  or  more  often,  the  man  offers  his 
note  for  sixty  or  ninety  days,  bearing  the  indorse- 
ment of  one  or  two  responsible  parties  known  to 
the  bank.  This  \^  personal  security.  Sometimes  he 
gives  the  bank  a  mortgage  on  lands  or  houses  which 
he  owns,  and  this  is  real  estate  security.  But  in  all 
of  these  cases,  he  gives  the  bank  his  note,  which 
runs  in  this  fashion :  — 

|i 50.00  MoRRiSTOWN,  N.  J.,  January  10,  19 10. 

Sixty  days  after  date  I  promise  to  pay  to  the  order 
of  the  First  National  Bank  of  Morristown,  One  Hundred 
and  Fifty  Dollars,  at  the  First  National  Bank  of  Mor- 
ristown, with  interest.    Value  received. 

Due  John  Jameson. 

The  address  of  the  drawer  and  the  date  when  the 
note  is  due  are  usually  noted  in  pencil  by  the  bank. 
The  words  *'  value  received  "  should  not  be  omitted ; 
otherwise  the  suspicion  is  apt  to  arise  that  the  note 


34    EVERY-DAY  BUSINESS   FOR  WOMEN 

was  obtained  by  fraud ;  and  although  the  law  as- 
sumes that  the  value  was  received,  yet  it  may  re- 
quire proof  of  the  fact.  Notes  bear  interest  only 
when  it  is  so  stated  in  them.  This  paper  is  called 
a  promissory  itotey  because  it  is  "  an  unconditional 
order  or  promise  to  pay  a  certain  sum  of  money  at 
a  determinable  time." 

The  note  falls  due  on  the  date  mentioned  in 
it,  unless  that  day  happens  to  be  Sunday  or  some 
legal  holiday,  in  which  case  it  is  due  on  the  next 
business  day.  Legal  holidays  vary  in  different  states, 
and  it  is  well  to  be  informed  about  them  before  de- 
ferring payment  of  a  note  on  that  account.  If  a  note 
does  not  state  a  time  for  payment,  it  is  held  to  be 
payable  on  demand.  Until  quite  recently  three  days 
were  allowed  on  every  note  beyond  the  time  when 
it  fell  due,  before  it  could  be  protested  ;  these  were 
termed  ''days  of  grace."  As  facilities  for  communi- 
cation improved,  the  necessity,  that  arose  in  stage- 
coach days  of  uncertain  mail-travel,  disappeared ; 
and  they  have  been  legally  abolished  in  many  states. 

A  few  days  before  the  note  is  due,  John  Jameson 
will  probably  receive  a  notice  from  the  bank  to  that 
effect ;  and  if  he  does  not  pay  the  note  when  the 
day  arrives,  the  bank  at  once  protests  it  by  its 
cashier  and  notary ;  for  a  note  that  is  not  protested 
when  it  is  due  and  unpaid,  cannot  be  collected  from 
the  indorsers.  A  notice  of  the  protest  is  sent  to  the 


BORROWER  AND  LENDER  35 

drawer  of  the  note  and  to  each  of  the  indorsers,  who 
are  severally  liable  if  the  maker  of  the  note  fails  to 
pay  it.  For  this  reason  one  should  be  exceedingly 
careful  about  indorsing  notes ;  since  it  sometimes 
happens  that  the  friend,  or  the  apparently  prosperous 
acquaintance,  for  whom  one  has  good-naturedly  in- 
dorsed a  note,  fails  to  pay  it,  and  the  loss  falls  upon 
the  trusting  indorser ;  and  much  bitterness  arises 
in  the  soul  of  a  man  who  sees  his  savings  of  years 
swept  away  to  meet  a  demand  like  this.  It  is  a  safe 
rule  never  to  indorse  a  note  unless  one  is  able  to 
make  a  gift  of  the  amount.  The  Wise  Man  of  Pro- 
verbs says,  "He  that  is  surety  for  a  stranger  shall 
smart  for  it ;  but  he  that  hateth  suretyship  is 
sure"  ;*  and  gives  further  warning :  "Be  thou  not 
of  them  that  are  sureties  for  debts.  If  thou  hast 
not  wherewith  to  pay,  why  should  he  take  away  thy 
bed  from  under  thee  .? "  ^ 

Although  the  bank  protects  itself  by  a  prompt 
protest,  it  will  usually  wait  a  short  time  for  the  mak- 
ers or  indorsers  to  pay  the  note  before  entering 
suit  in  the  courts.  A  bank  will  usually  extend  a  note, 
with  the  consent  of  the  indorsers,  if  the  interest  is 
paid  when  due. 

It  is  considered  a  disgrace  for  a  man  of  business 
or  of  honor  to  have  his  note  protested;  but  it  some- 
times happens  through  the  carelessness  of  a  clerk 

1  Proverbs  xi,  15.  *  Proverbs  xxii,  26,  27. 


36    EVERY-DAY  BUSINESS   FOR  WOMEN 

or  even  through  his  own  forgetfulness.  It  damages 
a  man's  credit  at  the  bank,  and  makes  it  difficult  for 
him  to  borrow  again. 

When,  however,  a  note  is  promptly  paid,  the 
cashier  stamps  it  with  the  bank's  name,  and  the 
word  "  Paid,"  and  the  date  of  payment,  and  then 
returns  it  to  the  maker.  The  note  is  then  said  to 
be  canceled. 

If  a  note  comes  into  one's  possession  by  indorse- 
ment from  the  former  holder,  it  may  be  deposited 
for  collection  in  one's  own  bank,  no  matter  at  what 
bank  it  was  made  payable.  But  a  note  thus  left  for 
collection  should  not  be  drawn  against  until  the 
bank  sends  notice  that  it  has  been  collected. 

Notes  given  by  intoxicated  persons  are  illegal 
and  therefore  uncollectable  at  law  if  fraud  can  be 
proven :  this  is  the  law's  protection  for  the  unfor- 
tunate. Many  cases  of  such  fraudulent  transactions 
have  been  brought  to  light  recently  in  the  dealings 
of  dishonest  white  men  with  intoxicated  Indians. 
Fortunately  the  government  has  been  able  to  can- 
cel these  notes  and  contracts  for  sales,  and  so  has 
prevented  the  ignorant  and  unfortunate  Redskin 
from  being  cheated. 

Much  of  modern  business  is  transacted  by  notes : 
most  goods  bought  at  wholesale  are  paid  for  by  the 
merchant's  note  for  thirty,  sixty,  or  ninety  days; 
and  the  wholesale  dealer  is  quite  willing  to  take  the 


BORROWER  AND  LENDER  37 

note  of  a  reliable  customer,  which  he  then  holds 
until  due,  or  more  frequently  indorses  and  then  pre- 
sents to  his  bank  to  have  it  discounted.  That  is,  the 
bank  gives  him  the  present  value  of  the  note  :  since 
the  note  calls  for  a  certain  amount  of  money  at 
a  future  date,  it  is  evidently  not  worth  quite  that 
amount  at  any  time  before  that  date,  and  the  bank 
subtracts  the  interest  on  that  sum  for  the  time  the 
note  has  yet  to  run,*and  gives  the  holder  of  the  note 
the  balance.  The  dealer  has  negotiated  his  note, 
that  is,  has  done  business  with  it  by  turning  it  into 
money,  and  hence  promissory  notes  are  termed 
negotiable  paper.  Suppose,  for  example,  that  a  man 
holds  a  note  for  ^500  due  in  sixty  days,  and  finds 
that  he  needs  the  money  ten  days  after  he  has  re- 
ceived the  note.  The  bank  discounts  it  for  ;^495.83, 
its  present  value,  as  it  has  fifty  days  yet  to  run 
before  maturity,  or  the  time  when  it  is  due. 

Besides  these  "  notes  of  hand,"  as  the  old-fash- 
ioned still  term  them,  there  are  other  forms  of  bank 
paper  which  are  known  as  sight  drafts;  these  read 
as  follows  :  — 

Washington,  D.  C,  May  2,  1908. 

At  sight  pay  to  the  order  of  James  Doe  the  sum  of 
One  Hundred  Dollars  and  charge  the  same  to  my  ac- 
count. 

To  Rogers  &  Day,  Joseph  Roe. 

New  York  City. 


38     EVERY-DAY  BUSINESS   FOR  WOMEN 

This  order,  sent  to  James  Doe  at  New  York,  is  by 
him  presented  to  Rogers  and  Day,  and  by  them 
honored,  that  is,  paid.  Thus  Joseph  Roe  has  trans- 
ferred part  of  his  credit  with  Rogers  and  Day  to 
James  Doe.  Sometimes  the  draft  reads  "sixty  days 
after  sight,"  in  which  case  Rogers  and  Day  write 
the  word  "accepted"  across  the  face  of  the  draft, 
and  when  the  date  arrives  pay  it.  If,  however.  Doe 
wishes  his  money  before  that  time,  he  may  indorse 
the  draft  and  get  it  discounted  at  the  bank  ;  a  sight 
draft  may  be  deposited  just  as  if  it  were  a  check. 

If  a  note  is  lost  or  stolen,  what  can  be  done  about 
it .?  Sometimes  the  note  is  accidentally  burned  up, 
and  the  man  who  gave  the  note  takes  advantage  of 
the  fact  and  refuses  to  pay  it,  on  the  ground  that 
the  holder  has  no  proof  of  his  indebtedness.  If  the 
owner  can  prove  that  he  gave  value  for  the  note, 
and  can  prove  the  amount  of  that  value,  he  can  re- 
cover the  amount  of  the  note  by  a  lawsuit.  But  if 
the  note  covered  only  a  personal  loan  and  there 
were  no  witnesses  to  the  transaction,  and  the  maker 
of  the  note  swore  that  he  had  neither  received  value 
nor  given  a  note,  —  in  other  words  perjured  him- 
self, —  the  unfortunate  loser  would  have  no  re- 
course, and  be  left  poorer  but  wiser  for  his  ill-placed 
loan  and  his  carelessness. 

Interest  and  usury  are  two  terms  often  heard  in 
business.  Both  terms  indicate  money  paid  for  the 


BORROWER  AND   LENDER  39 

use  of  money  :  interest  is  the  rate  fixed  by  law,  and 
usury  is  an  amount  extorted  in  excess  of  the  legal 
rate.  This  legal  rate  varies  in  different  states;  in 
most  of  the  Eastern  and  Northern  states,  where 
wealth  is  abundant,  the  rate  is  six  per  cent ;  but 
loans  are  frequently  made  at  four  and  one  half  per 
cent,  and  large  corporations,  when  borrowing  mil- 
lions, sometimes  pay  only  two  per  cent.  In  the 
South  and  West,  where  there  are  numerous  enter- 
prises to  be  exploited,  and  limited  capital,  the  interest 
is  higher.  In  Denver,  years  ago,  the  rate  for  loans 
was  eighteen  and  twenty  per  cent,  so  great  was  the 
demand  for  money  and  so  limited  the  supply. 

In  1610,  when  King  James's  scholars  translated 
the  Bible,  usury  was  the  general  term  for  interest ; 
but  it  has  since  acquired  a  sinister  significance,  and 
we  have  a  just  contempt  for  the  usurer  as  one  who 
extorts  money  from  the  necessities  of  others.  Cases 
have  been  known  where  men  charged  as  high  as 
fifty  per  cent  for  money,  and  two  per  cent  a  month 
was  a  low  rate.  Of  course  the  security  given  was 
not  very  valuable,  and  the  need  was  great,  and  the 
money-lender  took  advantage  of  that  state  of  things. 
The  notes  that  record  such  transactions  are  not 
handled  by  banks,  but  by  men  known  as  "note- 
shavers."  They  ask  large  interest,  which  they  de- 
duct in  advance,  so  that  a  man  may  realize  only 
three  hundred  dollars  from  a  note  for  five  hundred. 


40     EVERY-DAY  BUSINESS   FOR  WOMEN 

as  the  forty  per  cent  interest  has  been  deducted 
This  form  of  borrowing  is  frequently  resorted  to  by 
the  heirs  of  entailed  estates  in  England,  whose  ex- 
travagance in  living  exceeds  the  parental  allowance. 
The  dealer,  who  knows  that  the  succession  is  sure, 
often  advances  large  sums  on  post  obit  notes.  It 
happens  sometimes  that  he  acquires  such  enormous 
claims  against  the  estate  that,  when  the  heir  comes 
to  his  own,  the  estate  is  bankrupted  to  pay  the 
money-lender,  or  else  the  heir  is  forced  to  marry 
for  wealth,  without  regard  to  family  or  personal 
feeling,  that  his  wife's  dowry  may  free  him  from  the 
money-lender.  The  novelists  frequently  make  the 
daughter  of  the  ambitious  creditor  the  victim  of 
such  a  marriage. 

It  was  because  Shylock  insisted  upon  the  exact 
fulfillment  of  the  terms  of  an  extortionate  loan  made 
upon  Antonio's  bond,  or  note,  that  his  name  has  be- 
come a  byword  for  close  dealing ;  and  to  call  a  man 
a  "Shylock"  is  to  condemn  him  as  heartless  and 
unscrupulous. 

When  Polonius  is  sending  his  son  Laertes  to 
Paris,  his  advice  is :  — 

Neither  a  borrower  nor  a  lender  be ; 
For  loan  oft  loses  both  itself  and  friend, 
And  borrowing  dulls  the  edge  of  husbandry. 

The  Wise  Man  of  Proverbs  declares  that  "The  bor* 
rower  is  servant  to  the  lender,"  and  the  man  who 


BORROWER  AND   LENDER  41 

borrows,  with  no  means  in  sight,  finds  this  to  be 
true.  "  It  is  the  first  step  that  costs,"  and  when 
one's  natural  disinclination  to  be  dependent  has  been 
overcome,  every  loan  is  asked  with  less  compunction; 
until  one  has  bartered  friendship,  self-esteem,  re- 
spect, truth,  and  honorable  integrity,  and  sacrificed 
ease  of  mind,  and  brain-power,  and  repose,  to  the 
mad  scheming  to  find  fresh  pretexts  and  plans  for 
borrowing  without  repaying,  in  order  to  keep  up  a 
style  of  life  which  ought  to  be  abandoned  ;  and  has 
made  life  such  a  place  of  torment  that  the  cell,  which 
is  reached  by  the  crime  with  which  such  careers  al- 
most invariably  terminate,  is  welcomed  as  a  haven 
of  rest,  where  the  jaded  mind  can  repose.  It  is  a 
pitiable  picture  of  wreck,  a  bankruptcy  of  the  soul 
more  lamentable  than  that  of  any  financial  institu- 
tion could  be ;  and  though  all  do  not  reach  the  goal, 
to  borrow  beyond  one's  ability  to  pay  is  the  first 
step  on  that  fateful  journey. 

There  is  yet  another  question  about  banks  in  their 
capacity  as  borrowers  and  lenders,  and  that  refers 
to  the  failures  of  banks.  This  means  that  on  a 
certain  day  the  bank  fails  to  honor  or  cash  all  the 
checks  presented.  For  some  reason  or  other  a  few 
people  become  distrustful,  and  withdraw  their  money 
from  the  bank ;  the  alarm  spreads,  and  many  de- 
positors rush  to  the  bank,  and  a  panic  ensues.  If 
the  bank  is  perfectly  solvent,  that  is,  has  money  or 


42     EVERY-DAY  BUSINESS   FOR  WOMEN 

stocks  or  bonds,  —  "assets,"  as  they  are  called,  — 
in  excess  of  its  liabilities,  it  may  sometimes  tem- 
porarily suspend  payment  in  order  to  gain  time  to 
cash  the  securities  and  thus  get  the  money  for  its 
depositors.  If  financial  conditions  are  generally 
sound,  and  there  is  a  "run  "  on  only  one  bank,  the 
others  in  the  city  will  stand  by  and  lend  it  some 
of  their  surplus  cash  to  meet  the  demands.  A  few 
years  ago  a  great  panic  was  feared  in  Baltimore  : 
the  "run"  started  late  in  the  day,  so  that  the  two 
banks  concerned  had  cash  enough  for  that  day  ;  and 
during  the  night  New  York  and  Philadelphia  bank- 
ers rushed  thousands  of  dollars  in  cash  by  express 
to  Baltimore,  in  exchange  for  the  securities  held  by 
those  banks.  As  soon  as  people  knew  that  they 
could  get  their  money,  they  were  content  to  let  it 
stay  in  the  bank. 

But  sometimes  the  panicky  feeling  is  well 
grounded  :  for  the  investments  in  which  the  bank, 
as  borrower  from  its  depositors,  has  placed  its  sur- 
plus funds  may  have  proved  unprofitable ;  the  busi- 
ness may  have  been  unsuccessfully  run,  and  so  the 
bank,  as  lender  to  these  concerns,  has  lost  its  stock 
and  notes.  In  such  an  event,  when  a  bank's  assets 
do  not  equal  its  liabilities,  that  is,  when  what  it  owns 
will  not  pay  what  it  owes,  it  goes  down  with  a  great 
financial  crash,  and  the  bigger  the  bank,  the  greater 
the  wreck  it  makes  of  other  and  dependent  institu- 


BORROWER  AND   LENDER  43 

tions  :  for  every  bank  has  its  affiliations,  and  the 
failure  of  the  larger  makes  almost  necessary  the 
failure  of  the  smaller  bank,  whose  funds  were  par- 
tially kept  there.  And  beyond  these  the  ruin  ex- 
tends to  the  thousands  of  small  depositors  whose 
savings  are  swept  away  in  the  wreck. 

It  is  to  obviate  this  state  of  affairs  as  far  as  pos- 
sible, that  the  federal  and  state  governments  have 
provided  bank  examiners,  who  make  frequent  and 
unexpected  visits  to  inspect  the  books  and  assets 
of  the  banks  and  report  upon  their  soundness. 

A  panic  is  a  very  bad  thing,  and  a  bank  failure  a 
sadder  thing;  but  it  is  a  risk  that  must  be  run,  so 
long  as  all  bank  directors  are  not  gifted  enough  to 
foresee  the  issue  of  investments.  And  the  failures 
are  comparatively  rare,  while  the  usefulness  of 
banks  is  a  daily  experience,  that  needs  no  other 
demonstration :  and  the  integrity  that  usually  marks 
their  transactions  makes  banks  the  foundation  on 
which  modern  business  is  built. 


CHAPTER   IV 

EXCHANGE 

There  are  still  other  functions  of  banks  which  af- 
fect the  commerce  of  the  world,  as  well  as  that  of 
the  community ;  functions  which  call  into  exercise 
such  skill  and  sagacity  that  "  the  profession  of  the 
banker,  who  organizes  and  conducts  the  borrowings 
of  whole  communities,  is  among  the  most  honorable 
known  to  modern  society."  ^  The  greatest  of  these 
functions  is  the  extension  of  the  credit  system  to  the 
commerce  of  the  world,  so  that  it  shall  supersede 
the  use  of  actual  gold  and  silver  in  all  possible  trans- 
actions. 

It  is  always  a  puzzle  to  the  ignorant  how  this  can 
be  done,  for  their  own  transactions  are  always  con- 
ducted on  a  cash  basis.  Dr.  Davidson,  Archbishop 
of  Canterbury,  tells  a  good  story  that  illustrates  this 
point.  "  When  I  was  a  young  man  I  once  made  an 
impassioned  appeal  on  behalf  of  a  foreign  mission- 
ary to  an  audience  composed  of  my  rural  parish- 
ioners. The  following  week  I  was  surprised,  on  en- 
tering a  provision  shop  in  the  village,  to  be  greeted 
with  marked  coolness  by  the  worthy  dame  who  kept 
*  Walker,  Political  Economy^  page  309. 


EXCHANGE  45 

it.  On  my  asking  the  reason  of  this  strange  treat- 
ment, the  good  woman  produced  a  half-crown  from 
a  drawer,  and,  throwing  it  down  before  my  aston- 
ished eyes,  snapped :  *  I  marked  that  half-crown 
and  put  it  in  the  plate  last  Sunday,  and  here  it  is 
back  again  in  my  shop.  I  knowed  well  them  niggers 
would  never  get  the  money  ! ' "  How  could  she  un- 
derstand that  a  slip  of  paper  could  represent  this 
value  of  money,  and  that  in  that  form  it  could  be 
sent  flying  on  the  wings  of  the  great  credit  system 
of  commerce  to  the  remote  parts  of  the  earth  ? 

To  explain  how  it  is  possible  that  a  check  on 
London  can  be  cashed  in  New  York,  or  one  on 
San  Francisco  cashed  in  Chicago,  is  to  discuss  the 
fourth  function  of  a  bank,  that  is,  its  work  as  an 
exchanger  or  transferrer  of  value.  This  is  accom- 
plished in  various  ways,  according  as  it  concerns 
(i)  exchange  between  banks  in  the  same  city,  or  (2) 
exchange  between  banks  in  the  same  country,  or 
(3)  foreign  exchanges. 

(i)  If  you  live  in  a  small  town,  some  time  during 
the  day  you  may  see  a  responsible-looking  man, 
wearing  a  cap  labeled  **  Bank  Messenger,"  and  car- 
rying a  satchel,  going  from  one  bank  to  another.  In 
his  satchel  he  carries  all  the  checks  upon  other 
banks  which  have  been  received  over  the  counter 
of  the  bank  which  he  represents,  during  the  last 
twenty-four  hours.  These  he  presents  at  the  several 


46     EVERY-DAY  BUSINESS   FOR  WOMEN 

banks  to  which  the  checks  belong,  and  collects  the 
checks  which  these  banks  hold  of  his  bank ;  and  the 
difference  between  the  amount  of  the  checks  held 
by  the  second  bank  and  the  amount  of  their  checks 
presented  by  the  messenger,  is  paid  in  money ;  and 
so  the  daily  account  is  balanced.  But  this  would  be 
impossible  in  a  large  city ;  and  so  there  sprang  up 
great  central  institutions,  called  clearing  houses, 
where  every  day  at  a  certain  hour  a  clerk  from  each 
bank  carries  the  checks  of  all  other  city  banks  which 
his  bank  has  received,  and  deposits  them  with  the 
clearing  house  to  its  credit :  and  then  all  the  checks 
drawn  on  his  bank  are  debited  or  charged  to  it.  The 
balance  is  paid,  not  in  cash,  but  in  a  draft  on  his 
bank's  clearing-house  credit :  for  every  bank  shar- 
ing this  convenience  must  own  stock  in  the  clearing 
house  company.  In  this  way  checks  amounting  to 
a  million  dollars  are  settled  without  the  use  of  a 
cent  of  coin,  simply  by  the  transference  of  credit. 

(2)  Outside  of  their  own  cities,  banks  in  certain 
central  localities  do  a  sort  of  clearing-house  business 
for  other  banks ;  thus  a  bank  in  San  Francisco  will 
cash  for  its  eastern  friends  all  checks  on  smaller 
California  banks.  Such  a  bank  is  called  a  "  corre- 
spondent " ;  and  every  bank  has  one  in  every  large 
section  of  territory.  Th«  indorsing  stamps  on  a 
check  returned  from  a  distant  point  afford  an  easy 
means  of  tracing  the  journey  it  has  taken  ;  for  every 


EXCHANGE  47 

bank  through  which  it  has  passed  has  had  a  debit 
and  credit  record  of  it. 

Another  form  of  exchange  of  values  is  that  known 
as  New  York  exchange.  This  is  effected  by  means 
of  drafts,  that  is,  checks  from  one  bank  upon  an- 
other. In  fact  the  legal  definition  of  a  check  is 
"  a  bill  of  exchange  drawn  on  a  bank  and  payable 
on  demand." 

Every  bank  has  a  correspondent  in  New  York, 
with  whom  it  has  a  running  account  which  is  bal- 
anced every  month.  When  a  person  in  a  town  out- 
side of  New  York  wishes  to  make  a  purchase  there, 
he  goes  to  his  bank  and  draws  a  check  for  the  sum 
he  wishes  to  send,  after  this  fashion  :  "  Pay  to  the 
order  of  New  York  exchange  for  John  Jones  Thirty 
Dollars.  (Signed)  John  Jones."  This  he  presents  to 
the  cashier,  who  then  gives  him  in  return  a  draft  on 
a  New  York  bank  for  that  amount,  payable  to  his 
order.  Jones  then  writes  a  full  indorsement,  making 
it  payable  to  the  party  in  New  York  to  whom  he 
wishes  to  have  it  paid,  and  sends  it  on.  The  advan- 
tage of  having  it  made  out  to  his  own  order  is  that 
the  draft  then  contains  a  full  history  of  the  trans- 
action, naming  the  sender  and  receiver,  and  might 
serve  as  evidence  in  case  of  a  dispute. 

A  New  York  draft  is  cashed  more  easily  than  an 
ordinary  check ;  moreover  no  discount  is  made  on 
that,  as  is  often  done  on  out-of-town  checks.  In  the 


48    EVERY-DAY  BUSINESS   FOR  WOMEN 

South  and  West  New  York  exchange  must  be  pur- 
chased at  the  rate  of  one  fourth  of  one  per  cent,  a 
draft  for  one  hundred  dollars  (^loo)  costing  twenty- 
five  cents.  But  in  most  eastern  cities  customers  of 
a  bank  can  have  New  York  exchange  for  the  ask- 
ing. Chicago  banks  frequently  ask  this  rate  for 
cashing  checks  of  persons  who  are  not  depositors. 
The  reason  that  these  drafts  are  more  easily  cashed 
is  because  they  are  a  bank's  check  on  a  bank,  and 
so  their  validity  can  be  easily  ascertained  ;  they  also 
bring  to  the  banks  which  cash  them  an  amount  of 
New  York  bank  credit  which  they  are  glad  to  have. 

(3)  Foreign  exchange,  or  transfers  of  value  be- 
tween banks  situated  in  different  countries,  covers 
a  field  by  itself ;  for  this  was  the  earliest  form  of 
exchange,  its  raison  ditre.  Let  us  illustrate  the 
transaction. 

A  merchant  in  New  York  wishes  to  pay  for  goods 
which  he  has  bought  in  London  ;  but  if  he  sends  the 
gold  to  the  London  merchant  he  must  pay  the  cost 
of  transportation,  and  also  insurance  on  it  while  in 
transit,  and  this  greatly  increases  his  debt ;  besides, 
he  must  accumulate  the  gold  coin,  and  it  takes  time 
to  accumulate  a  quantity.  A  few  weeks  afterward, 
the  London  merchant  may  wish  to  buy  grain  in 
America ;  he  must  send  gold  back  to  pay  for  it.  So 
the  actual  money  is  kept  traveling,  and  cannot  ful- 
fill its  legitimate  use  as  currency,  and  the  country  is 


EXCHANGE  49 

inconvenienced  by  the  withdrawal  of  so  much  gold 
from  circulation.  Instead  of  this  cumbersome  meth- 
od, with  all  its  attendant  disadvantages,  the  New 
York  merchant  may  go  to  a  firm  dealing  in  foreign 
exchange,  say  Brown  Brothers  &  Company,  and 
buy  a  London  draft  on  their  correspondents.  Brown, 
Shipley  &  Company,  for  which  he  pays  at  the  aver- 
age rate  of  $4.88  per  pound  sterling,  or  $488  for 
one  hundred  pounds. 

This  draft  is  issued  in  duplicate ;  the  first  one 
reading :  — 

No.  3164.  New  York,  January  28,  1910. 

Messrs.  Brown,  Shipley  &  Co.,  London  : 

Pay  to  the  order  of  William  Monk  One  Hundred 
Pounds  Sterling.     Duplicate  unpaid. 

Per.  Pro.  Brown  Brothers  &  Co. 
;fioo.  John  Doe. 

The  duplicate  is  identical  in  language  except  that 
it  declares  the  "original  unpaid,"  and  the  two  are 
sent  to  the  addressee  by  separate  steamers,  to  avoid 
the  possible  loss  of  both  by  either  steamer.  The 
London  merchant  in  his  turn  goes  to  Brown,  Ship- 
ley and  Company,  and  buys  New  York  exchange. 

And  so  the  accounts  are  kept,  and  business  done, 
by  credit-slips  of  paper.  At  certain  intervals  one 
sees  in  the  financial  news  an  item  announcing  that 
so  many  "millions  of  gold  left  the  port  to-day." 


50     EVERY-DAY  BUSINESS   FOR  WOMEN 

That  means  that  the  London  bankers,  or  other  for- 
eign exchangers,  have  paid  out  on  account  of  New 
York  drafts  more  gold  than  they  have  received,  so 
New  York  must  send  gold  to  balance  the  account. 
Sometimes  this  is  sent  in  gold  coin  of  the  highest 
grade  and  weight ;  sometimes  in  bullion  or  bars  of 
melted  gold.  But  in  whatever  form  sent  the  final 
debt  is  paid  in  gold. 

If  New  York  must  send  gold  to  London,  because 
her  banks  are  indebted  to  those  of  London,  we  say 
that  London  exchange  is  high  ;  and  if  London  owes 
New  York,  then  London  exchange  is  low.  When 
exchange  is  high  a  man  might  have  to  buy  one 
hundred  pounds  at  the  rate  of  ^4.95  per  pound  ster- 
ling; when  low,  he  might  get  it  for  $4.86.  That  is 
the  price  a  man  must  pay  for  a  draft,  if  he  wants  to 
avoid  sending  the  gold  for  himself,  paying  freight 
and  insurance  charges  on  it;  for  exchange  never 
goes  higher  than  the  cost  of  sending  the  actual 
gold  would  be. 

It  is  because  all  international  debts  of  commerce 
must  be  paid  in  gold,  that  merchants  are  interested 
to  have  a  country's  finances  conducted  on  a  g-o/d 
standard.  This  means  that  all  forms  of  representa- 
tive money,  bank-notes  or  silver  or  subsidiary  coin, 
can  be  exchanged  for  gold  at  the  pleasure  of  the 
holder.  If  the  gold  can  be  had,  most  people  prefer 
to  have  paper  money  for  actual  use.  But  if  a  coun- 


EXCHANGE  51 

try's  currency  is  not  redeemable  in  gold,  it  may 
pass  current  in  that  country,  but  will  not  outside  of 
it ;  so  that  gold  coin  bears  a  premium  and  is  sent 
out  of  the  country  to  pay  debts.  Bankers  who  deal 
in  foreign  exchange  are  always  accumulating  gold 
coin,  retaining  in  their  vaults  the  new  full-weight 
pieces  for  use  in  exchange,  and  passing  out  again 
all  worn  pieces  which  have  lost  some  of  their 
weight  by  handling ;  for  the  value  of  the  gold  coin 
in  exchange  is  determined  by  its  weight.  By  this 
means  they  have  gold  in  readiness  for  shipment 
when  needed. 

The  same  rule  is  followed  for  French  or  Ger- 
man or  Italian  exchange.  But  English  exchange  is 
current  and  desired  at  all  the  banking  centres  of 
the  world,  since  the  great  trading  nation  of  the 
world  has  taught  all  other  nations  the  value  of  her 
high-grade  coin  and  the  integrity  of  her  merchant 
class.  New  York  is  making  her  reputation,  but 
London  has  the  start  by  many  years. 

Foreign  letters  of  credit  are  issued  in  English 
pounds  sterling,  for  the  reason  that  they  are  recog- 
nized by  bankers  everywhere  as  desirable,  since 
they  all  have  a  use  for  London  credit.  A  letter  of 
credit  is  the  traveler's  greatest  friend  when  abroad. 
The  letter  is  really  an  introduction  to  the  foreign 
bankers ;  a  specimen  copy  may  be  found  in  the 
Appendix  to  this  book.  On  its  last  page  is  a  list 


52     EVERY-DAY  BUSINESS   FOR  WOMEN 

of  bankers  in  various  countries  where  the  credit 
will  be  honored.  To  buy  such  a  letter  is  practically 
to  buy  a  draft  on  London,  which  is  to  be  paid  in 
desired  sums  on  demand  :  it  is  bought  in  New  York 
at  the  ruling  rate  of  exchange  on  that  day,  say  at 
$4.88  per  pound  sterling,  plus  a  commission  of  one 
per  cent  to  the  banker;  that  is,  a  letter  for  two 
hundred  pounds  on  that  day  would  cost  ^985.76, 
which  is  paid  to  the  bank  issuing  the  circular  letter 
of  credit. 

Armed  with  this  document  the  traveler  may  go 
to  any  bank  named  on  the  list,  and  ask  for  any 
portion  of  the  sum,  and  receive  it  in  the  coin  of  the 
country.  The  banker  asks  him  to  sign  an  order  on 
the  London  firm,  and  if  that  signature  corresponds 
with  the  one  on  the  letter  of  credit,  the  draft  is 
cashed  at  the  prevailing  rate  of  exchange.  Thrifty 
travelers  read  the  financial  news  in  foreign  papers, 
and  draw  money  on  days  when  London  exchange 
is  high,  so  that  they  reap  the  benefit.  To  illustrate 
this  :  suppose  one  wanted  money  in  Germany; 
roughly  speaking,  a  pound  sterling  is  estimated  at 
twenty  marks,  but  is  really  worth  more  ;  on  some 
days  the  rate  would  be  20  marks,  64  pfennigs,  and 
on  others  20  marks,  32  pfennigs  ;  on  twenty  pounds 
the  difference  would  be  more  than  six  marks, 
enough  for  one  day's  board  at  a  modest  pension^  or 
boarding-house. 


EXCHANGE  53 

It  seems  almost  incredible  that  one  can  go  into  a 
small  bank  in  a  remote  Swiss  town,  a  total  stranger, 
and  get  a  draft  cashed  without  the  trouble  of  iden- 
tification. Circular  letters  of  credit  for  use  in  this 
country  are  also  issued  by  the  same  firms  that  issue 
foreign  letters,  and  at  the  same  rates ;  the  form  is 
slightly  different,  but  the  ease  with  which  one  can 
get  money  is  the  same. 

The  leading  express  companies  now  issue  trav- 
elers' checks  and  letters  of  credit.  The  checks  are 
drawn  for  a  definite  amount  when  bought,  and  are 
accepted  by  leading  hotels  in  Europe ;  their  great 
convenience  is  that  they  can  be  cashed  at  a  hotel, 
while  one  must  go  to  a  bank  for  money  on  the 
letter  of  credit.  Such  travelers'  checks  are  now 
issued  also  by  banks. 

These  foreign  banks  are  often  very  unpretentious 
places ;  sometimes  the  business  is  conducted  in  a 
real  parlor;  and  again  one  is  ushered  into  a  com- 
fortably fitted  room,  and  the  paper  sent  down  and 
the  money  sent  up  on  a  dumb  waiter.  But  the  great 
banking-house  of  the  Rothschilds  at  Frankfort  or 
the  well-appointed  Credit  Lyonnais  at  Paris  honors 
these  letters  no  sooner  than  the  Arab  banker  in 
Syria,  sitting  cross-legged  on  his  mat  in  the  Bazaar. 
The  mysterious  touch  of  English  commerce  and 
commercial  honor  is  felt  everywhere. 

But  a  letter  of  credit  is  more  than  a  financial 


54    EVERY-DAY   BUSINESS   FOR  WOMEN 

convenience.  Foreign  bankers  regard  it  as  a  letter 
of  introduction,  and,  if  one  is  a  resident  of  their 
city  for  some  weeks,  will  make  it  their  duty  to  see 
that  all  possible  attentions  are  paid  the  holder. 
Cards  of  admission  to  civil  functions,  to  which  the 
town's  people  generally  are  not  invited,  are  courte- 
ously sent  by  the  bankers ;  and  even  invitations 
to  club  balls  may  be  obtained  upon  request.  The 
bankers  of  Italy  are  especially  courteous  in  this  re- 
gard ;  and  although  one  knows  that  the  attentions 
of  impecunious  but  entertaining  officers  are  regu- 
lated by  the  information  their  banker  friends  give 
of  the  size  of  one's  letter  of  credit,  and  that  even 
the  amount  of  obsequious  service  one  meets  with 
at  the  hotel  is  based  upon  information  derived  from 
the  same  source,  the  attention  is  none  the  less  en- 
tertaining, and  instead  of  growing  cynical,  one  is 
merely  on  guard,  and  puts  a  proper  value  upon 
such  demonstrations. 

Besides  fulfilling  its  proper  function,  and  this 
subsidiary  one  of  furnishing  an  open  sesame  to  the 
banker's  good  offices,  a  letter  of  credit  is  often  of 
service  as  a  means  of  identification.  At  one  time, 
when  traveling  in  England,  we  sent  most  of  our 
heavy  luggage  direct  from  Leamington  to  London 
by  freight,  receiving  no  bill  of  lading,  as  the  agent 
insisted  it  was  not  necessary.  On  reaching  London, 
two  weeks  later,  we  drove  to  the  railway-freight 


EXCHANGE  55 

office,  stopping  en  route  at  the  bank.  At  the  freight 
office  we  found  to  our  dismay  that  a  receipt  was 
necessary  to  prove  property,  and  should  have  been 
given  to  us  at  Leamington.  We  described  the  trunks 
and  their  markings  minutely,  but  the  official  was 
not  quite  satisfied  ;  finally  we  bethought  ourselves 
of  the  letter  of  credit  on  which  we  had  just  drawn 
money.  This  identification  was  accepted  and  our 
luggage  released.  I  have  used  an  expired  letter  of 
credit  as  a  means  of  identification  in  an  inland  city, 
where  I  was  a  stranger,  and  where  I  wished  to  cash 
a  New  York  draft.  It  was  accepted  as  documentary 
evidence  of  identification  for  the  reason  that  when- 
ever a  bank  honors  such  a  letter  by  paying  out 
money  to  its  holder,  a  record  is  made,  on  the  inside 
page,  of  the  date,  the  name  of  the  bank  paying  it, 
and  the  amount  in  pounds  sterling  and  in  the  cur- 
rency of  the  country.  And  it  is  the  fact  that  a  well- 
known  bank  has  accepted  the  holder,  that  makes 
other  individuals  willing  to  do  so. 

Sometimes  the  letter  of  credit  is  issued,  and  the 
money  left  on  deposit  at  one's  home  bank  ;  then,  if 
one's  credit  has  not  been  exhausted  upon  the  re- 
turn home,  the  letter  may  be  retained  as  an  inter- 
esting souvenir  of  travels  ;  and  one  will  receive  as 
vouchers  all  the  drafts  signed  at  diflFerent  points  on 
her  travels.  But  ordinarily  one  exhausts  the  let- 
ter just  before  sailing,  and  with  the  last  draft  the 


56    EVERY-DAY  BUSINESS   FOR  WOMEN 

letter  itself  must  be  surrendered ;   it  seems  like 
parting  with  an  old  friend. 

These  letters  are  good  for  a  year,  and  one  may  be 
renewed,  or  a  fresh  one  issued,  by  the  deposit  of  an 
additional  sum  of  money  with  the  bank  that  issued 
it.  Sometimes  the  letter  is  lost,  and  then  the  Lon- 
don house,  the  New  York  house,  and  the  bank  in 
the  place  where  it  was  lost  should  be  immediately 
informed  of  that  fact  by  telegraph.  Payment  on  that 
letter  will  be  stopped,  for  each  letter  has  its  own 
number ;  and  in  a  few  weeks  a  new  letter  will  be 
sent.  But  as  one  might  be  in  an  awkward  position 
for  want  of  money  during  those  weeks,  the  better 
plan  is  to  guard  the  letter  of  credit  as  one's  choicest 
treasure,  one's  vade  mecum. 


CHAPTER  V 

OTHER   FORMS   OF   BANKS 

All  people  are  not  thrifty  by  nature,  but  nearly  all 
recognize  the  fact  that  it  is  a  good  thing  to  have 
money  saved  for  emergencies,  when  the  usual 
sources  of  income  fail  and  yet  the  demands  of  living 
continue  ;  for  one  may  have  no  money  coming  in, 
yet  if  one  is  to  live  one  must  have  food,  fuel,  shel- 
ter, and  clothing.  But  to  save  means  to  forego  some 
pleasure  in  the  present  for  the  sake  of  a  problem- 
atical future;  and  this  requires  self-denial  and  will- 
power, and  many  of  those  who  most  need  to  save 
are  deficient  in  these  qualities.  So,  partly  from 
business  motives,  partly  from  philanthropy,  various 
schemes  have  been  devised  to  encourage  thrift. 

Easily  ranking  first  among  these  institutions  is 
the  regular  savings  bank,  whose  chief  business  is  to 
receive  small  deposits  for  safe  keeping :  upon  such 
deposits  it  allows  a  small  sum  for  interest,  usually 
four  per  cent,  and  this  is  added  to  the  original  de- 
posits every  six  months ;  should  any  part  of  the  sum 
be  withdrawn  during  the  period,  it  loses  the  interest 
it  would  have  yielded.  When  a  panic  strikes  the 
East  Side  of  New  York,  and  the  poor  besiege  the 


58     EVERY-DAY  BUSINESS   FOR  WOMEN 

savings  banks  to  draw  out  their  money,  they  lose 
all  the  interest  for  the  current  period,  although  it 
may  be  only  a  day  before  the  interest  is  due. 

Money  in  savings  banks  cannot  be  withdrawn  by 
the  check  of  the  depositor,  as  in  an  ordinary  bank. 
The  pass-book  must  be  presented,  and  usually  cer- 
tain questions  answered  which  tend  to  establish  the 
identity  of  the  drawer ;  and  he  must  sign  a  counter 
receipt  or  draft  for  the  sum  wanted :  this  draft  bears 
the  number  of  the  pass-book.  The  object  of  this 
roundabout  way  of  getting  one's  money  is  to  make 
the  depositors  think  twice  before  withdrawing  their 
savings. 

Sometimes  these  bank-books  are  lost  or  stolen. 
The  bank  should  then  be  notified,  and  a  notice  like 
one  of  the  following  will  appear  in  the  paper :  — 

Bank-book  No.  405,561  of  the  Union  Dime  Savings  Insti- 
tution is  missing.  Any  person  having  a  claim  to  it  is  hereby 
called  upon  to  present  the  same  within  ten  days  or  submit  to 
having  said  pass-book  canceled  and  a  new  one  issued. 

Lost  or  Stolen.  —  Bank-book  No.  495,255  of  the  German 
Savings  Bank  in  the  City  of  New  York,  corner  4th  Ave.  and 
14th  St.,  issued  to  Karl  Diose.  All  persons  are  cautioned 
against  negotiating  the  same.  If  not  returned  to  the  bank  on 
the  2d  day  of  January,  1910,  a  duplicate  will  be  issued. 

A  notice  like  the  first  of  these  is  issued  for  the 
protection  of  the  bank,  and  indicates  that  the  book 


OTHER  FORMS  OF  BANKS      59 

has  been  reported  missing  by  its  owner  ;  but  as  dis- 
honest depositors  sometimes  report  books  missing, 
when  they  have  in  reality  assigned  them  to  some 
one  else  as  collateral  security  for  a  loan,  the  bank 
protects  itself  against  the  possibility  of  having  two 
claimants  for  one  account  by  calling  upon  the  actual 
holder  to  present  it. 

The  object  of  the  second  advertisement  is  to 
protect  the  bank  and  the  depositor.  From  a  bank 
cashier's  statement  I  quote  the  procedure:  "As  soon 
as  a  book  is  reported  lost  a  check  is  made  against  it 
in  the  bank,  and  the  loser  is  requested  to  advertise 
the  loss.  For  from  a  fortnight  to  thirty  days  ensuing, 
no  money  can  be  withdrawn  on  that  account,  unless 
the  book  shall  be  found.  If  not  found  the  depositor 
must  apply  for  a  new  book.  Generally  an  affidavit 
must  first  be  made  that  the  loser  cannot  find  the 
book  and  that  it  has  not  been  transferred  or  as- 
signed. All  this  is  scarcely  necessary,  but  it  makes 
a  bank  absolutely  safe  in  respect  to  that  deposit, 
and  it  puts  the  depositor  to  enough  trouble  to  make 
him  or  her  careful  thereafter.  Everything  having 
been  performed  as  outlined,  the  depositor  may  get 
a  new  book,  which  means  opening  a  new  account, 
as  accounts  are  never  duplicated." 

These  books  are  sometimes  used  as  collateral  se- 
curity by  poor  people,  when  borrowing  money ;  for 
they  show  that  they  have  the  money  to  repay  the 


6o     EVERY-DAY  BUSINESS   FOR  WOMEN 

loan,  but  do  not  want  to  lose  a  half-year's  interest 
for  a  few  days'  loan.  Sometimes  a  man  who  needs 
money  will  assign  his  bank-book  to  another  party, 
who  will  give  him  cash  in  return ;  the  new  owner 
thus  becomes  the  owner  of  the  account,  with  all  its 
benefits  of  interest.  Sometimes  this  is  a  fair  bargain, 
but  oftener  the  needy  depositor  assigns  his  book 
for  less  than  it  is  worth.  The  new  holder  must  be 
identified  at  the  bank,  and  the  assignment  noted 
there.  Saving  becomes  a  passion  with  some  people, 
and  they  will  live  in  almost  dire  distress,  oftentimes 
on  charity,  to  increase  their  bank  account.  Among 
the  rags  of  many  a  dead  beggar  has  been  found  a 
bank-book,  with  a  goodly  sum  to  his  credit. 

In  order  to  gather  in  all  possible  funds,  many 
savings  banks  are  open  until  ten  o'clock  on  Satur- 
day nights,  and  some  are  regularly  open  until  nine 
o'clock  every  night. 

Many  department  stores  have  opened  banks, 
where  their  customers  may  deposit  money,  and  draw 
upon  it  to  pay  accounts  at  that  store  only ;  interest 
is  allowed  on  the  deposits.  These  banks  are  opened 
to  induce  expenditure,  rather  than  to  assist  people 
in  saving. 

A  bank  is  a  common  feature  in  newsboys'  clubs, 
to  help  the  members,  the  "newsies,"  to  save  money. 
There  are  sometimes  amusing  experiences  in  con- 
nection with  these.  Some  years  ago  one  was  started 


OTHER  FORMS  OF  BANKS      6i 

in  such  a  club  at  Jersey  City.  The  newsboy  is  a 
suspicious  fellow,  and  the  boys  distrusted  the  bank. 
So  ten  of  them  combined  funds  and  let  one  boy  de- 
posit fifty  cents  ;  soon  afterwards  he  drew  it  out.  As 
soon  as  the  boys  found  that  money  in  the  bank 
could  be  taken  out  again,  confidence  was  established, 
and  they  all  became  depositors. 

Banks  are  opened  in  schools,  sometimes,  as  a  part 
of  the  educational  system,  to  train  the  depositors  in 
the  methods  and  forms  of  regular  business.  These 
banks  are  not  incorporated,  and  their  checks  do  not 
pass  current  outside. 

Although  not  organized  primarily  for  banking 
purposes,  trust  companies  now  conduct  a  large 
banking  business  as  an  outgrowth  or  development 
of  their  peculiar  functions.  These  companies  act  as 
trustees  of  estates,  as  executors  of  wills,  as  guardi- 
ans of  minors,  as  managers  of  the  separate  property 
of  married  women,  as  responsible  agents  for  the 
financial  transactions  of  municipalities  or  great  cor- 
porations, as  assignees  or  trustees  of  bankrupt  con- 
cerns ;  they  may  guarantee  the  title  to  land,  and 
manage  property  of  every  description  that  is  in- 
trusted to  them.  In  some  states  the  law  requires 
that  the  trust  funds  which  they  handle  must  be  kept 
separate,  and  that  securities  for  their  full  value 
must  be  deposited  with  the  officer  of  the  court,  who 
must  retain  them  for  the  benefit  of  the  parties  con- 


62     EVERY-DAY  BUSINESS   FOR  WOMEN 

cerned,  in  case  the  trust  company  defaults  in  its 
trust.  These  companies  fulfill  most  of  the  functions 
of  a  bank  of  deposit,  with  these  exceptions :  they 
may  not  issue  their  own  bills  to  circulate  as  money, 
and  they  cannot  discount  commercial  paper.  Some 
states  require  that  the  loans  must  be  secured  by 
mortgages  upon  lands  or  other  securities  whose 
market  value  exceeds  by  ten  per  cent  the  amount 
of  the  loan.  The  variety  of  functions  performed  by 
these  institutions  attracts  many  depositors  to  their 
banking  departments. 

Many  trust  companies  and  banks  provide  safe- 
deposit  facilities  for  their  customers  and  the  general 
public,  and  rent  lock  boxes  in  their  vaults  at  a  rate 
varying  with  the  size  of  the  box,  and  the  time  for 
which  it  is  taken.  In  these  boxes  one  may  keep 
family  silver,  jewels,  stocks,  bonds,  and  valuable 
papers,  quite  securely,  as  every  precaution  is  taken 
to  prevent  unauthorized  persons  from  gaining  access 
to  the  boxes. 

In  connection  with  some  of  the  churches,  there 
has  been  established  what  is  known  as  The  Penny 
Provident  Society.  Certain  members  of  the  good- 
works  circle  of  the  church  take  charge  of  a  certain 
number  of  poor  families,  visiting  them  every  week 
to  collect  their  savings,  from  a  penny  upward.  A 
receipt  is  given  for  every  sum  received ;  the  collector 
has  a  duplicate  receipt,  and  when  the  money  is  de- 


OTHER  FORMS  OF  BANKS      6$ 

posited  in  bank,  a  triplicate  is  given  the  bank,  which 
acknowledges  the  money  by  a  corresponding  entry 
on  the  pass-book  of  each  depositor.  When  money  is 
withdrawn,  these  books  must  be  presented  :  so  the 
collectors  usually  retain  the  pass-books  in  order  to 
prevent  the  whimsical  withdrawal  of  funds.  At  first 
glance  this  seems  a  roundabout  way ;  but  one  must 
take  into  account  the  mental  inertia  of  the  poor, 
their  lack  of  initiative,  and  the  distrust  of  ignorance 
for  new  undertakings.  Then  it  is  easily  seen  that 
much  help  toward  thriftiness  is  really  given  by 
the  self-sacrificing  collectors,  for  the  pride  of  the 
family  is  aroused,  and  they  struggle  to  increase  their 
account. 

Our  Post  Office  Department  maintains  a  Savings 
System.  Amounts  less  than  one  dollar  are  not  ac- 
cepted as  deposits ;  but  a  postal  savings  card  (ten 
cents)  to  which  is  affixed  nine  postal  savings  stamps 
(ten  cents  each)  is  accepted  as  a  deposit  for  one 
dollar.  Postal  savings  certificates,  made  out  in  the 
name  of  the  depositor,  serve  as  receipts.  Interest 
is  paid  at  the  rate  of  two  per  cent ;  no  interest  is 
paid  for  a  fraction  of  a  year.  Deposits  may  be  with- 
drawn upon  demand. 

These  philanthropic  schemes  on  the  part  of 
churches,  clubs,  and  governments,  to  induce  people 
to  save,  are  broadly  sociological,  and  vitally  politi- 
cal.   To  have  a  bank  account  is  the  first  step  in 


64    EVERY-DAY  BUSINESS   FOR  WOMEN 

economic  independence;  and  the  first  step  upward, 
socially,  for  the  individual.  The  laboring  man  who 
can  say,  "I  Ve  got  money  in  the  bank,"  has  taken 
a  long  step  forward.  It  is  for  this  reason  that  some 
urge  a  property  qualification  for  voters,  because 
such  a  man  has  "a  stake  in  the  country,"  as  our 
phrase  runs,  —  a  property  interest  in  good  govern- 
ment ;  and  where  he  has  a  stake,  he  will  stay  until 
he  "makes  good."  He  becomes  a  better  citizen 
when  he  feels  that  he  is  concerned  in  what  hap- 
pens to  the  country  by  reason  of  good  or  bad  laws. 
And  more  than  that,  having  acquired  the  habit  of 
thrift,  of  getting  full  value  for  every  penny,  he  is 
watchful  that  a  like  thriftiness  shall  be  exhibited 
by  the  city,  state,  and  national  governments  which 
he  votes  to  maintain. 

The  son  of  a  poor  man  who  began  by  contribut- 
ing his  hardly  saved  penny  to  the  Penny  Provident 
Fund,  and  later  had  his  account  at  the  savings 
bank,  may  some  day  become  the  large  capitalist, 
partly  because,  early  in  life,  he  had  been  taught  the 
saving  grace  of  self-denial.  Andrew  Carnegie  states 
that  he  was  really  started  on  his  way  to  his  present 
unmanageable  wealth  by  the  discovery  that  the  one 
hundred  dollars  which  he  had  saved,  had  earned 
interest  merely  by  lying  in  a  savings  bank.  That 
money  earned  money,  was  a  thing  he  had  not  fully 
realized  until  that  time.  Thereafter  he  endeavored 


OTHER  FORMS  OF  BANKS      65 

to  keep  as  much  as  possible  at  work.  This  kind  of 
work  goes  on  continuously,  Sundays  and  holidays, 
day  and  night,  rain  or  shine,  for  the  investor's 
benefit. 

It  is  hard  to  save,  to  remember  the  future  while 
enjoying  the  present;  and  this  difficulty  keeps 
many  sluggish  souls  from  competence.  It  is  to 
such  that  the  Wise  Man  speaks  in  chapter  six  of 
Proverbs : — 

Go  to  the  ant,  thou  sluggard  ; 

Consider  her  ways,  and  be  wise : 

Which  having  no  chief, 

Overseer,  or  ruler, 

Provideth  her  meat  in  the  summer, 

And  gathereth  her  food  in  the  harvest  .  •  • 

Yet  a  Httle  sleep,  a  little  slumber, 

A  Uttle  folding  of  the  hands  to  sleep  : 

So  shall  thy  poverty  come  as  a  robber, 

And  thy  want  as  an  armed  man. 


CHAPTER  VI 

ABOUT   MONEY 

There  are  many  people  who  seem  to  think  that 
money  itself  is  the  only  good,  that  plenty  of  gold 
means  the  gratification  of  every  desire.  But  most 
people  of  intelligence  value  money  only  for  what  it 
brings,  regarding  it  as  a  convenient  medium  of  ex- 
change for  values.  To  them  money  means  houses 
and  lands,  and  food  and  clothing,  and  travel  and 
books  and  amusements  :  only  the  miser  hoards  gold 
itself ;  the  rest  of  the  world  would  as  soon  have  any 
of  its  representative  forms.  Money,  however,  means 
all  of  these  comforts  only  when  one  is  in  a  situation 
to  exchange  it  for  them ;  and  one  might  starve  in  a 
desert,  although  staggering  under  the  weight  of  the 
gold  which  he  carried. 

So,  too,  it  happens  sometimes  that  one  may  be 
possessed  of  much  value,  but,  in  a  certain  place  or 
time,  be  without  its  representative  in  ready  money, 
and  find  food,  shelter,  or  clothing  denied  to  him. 
Sometimes  this  is  the  result  of  a  railroad  accident, 
in  which  his  baggage  has  been  burned,  his  pocket- 
book  lost,  and  he  is  stranded  in  a  strange  place 
at  the  mercy  of  the  hotel-keeper.  How  can  one  get 


ABOUT  MONEY  67 

money  in  such  an  emergency,  provided  one  has  it 
anywhere  ? 

There  are  many  ways  to  answer  this  question. 
The  most  rapid  means  is  to  telegraph  home  to  have 
money  sent  by  telegraph ;  and  if  one  is  unknown, 
the  words  "identification  waived"  should  be  in- 
serted in  the  order.  The  friend  at  home  goes  to  the 
telegraph  office  there  and  writes  an  order  on  the 
Western  Union  Telegraph  Company  to  pay  to  you, 
at  your  temporary  address,  any  sum  he  wishes  to 
send.  He  then  pays  over  this  amount  to  the  com- 
pany, and  also  the  charge  of  two  per  cent  for  the 
service,  and  the  cost  of  the  telegram.  The  company 
then  telegraphs  its  order  to  the  station  named,  and 
you  receive  a  summons  to  call  for  the  money.  The 
addition  of  the  words,  "identification  waived," 
makes  it  possible  for  you  to  get  it  although  un- 
known ;  but  there  is  this  risk,  that  any  one  else, 
receiving  the  notice  from  the  company  by  mistake, 
could  get  the  money  on  it ;  however,  as  this  is  a 
chance  in  a  thousand,  one  takes  it  in  an  emergency. 
Money  can  be  sent  by  ocean  cable  in  the  same  way  ; 
but  this  is  a  much  more  costly  proceeding. 

But  suppose  a  person  who  has  no  bank  account 
of  her  own,  but  is  in  a  place  where  she  is  known, 
so  that  identification  would  be  easy,  needs  money, 
—  how  would  she  get  it  ?  In  this  case  she  may  go 
to  the  bank,  accompanied  by  an  identifier,  and  draw 


68     EVERY-DAY  BUSINESS   FOR  WOMEN 

a  sight  draft  on  her  father  or  mother  at  home,  in 
the  form  already  given  in  chapter  three ;  this  draft 
the  bank  will  honor  at  once,  and  cash.  One  should 
always  have  authority  to  draw  sight-drafts  for  emer- 
gencies whenever  one  is  away  from  home.  To  get 
permission  it  is  necessary  sometimes  to  telegraph, 
"  Can  I  draw  on  you  at  sight  for  a  hundred  ? "  and 
when  the  permission  arrives  it  is  acted  upon  in  the 
manner  described.  This  is  cheaper  than  telegraph- 
ing the  money. 

A  very  ingenious  way  of  getting  money  in  an 
emergency  occurred  a  short  time  ago.  A  young 
man  who  was  returning  from  Europe,  toward  the 
close  of  the  voyage  found  himself  almost  penniless, 
probably  because  his  bets  on  the  rate  of  speed,  or 
his  card  games  in  the  smoking-room,  had  been  un- 
fortunate. In  this  strait  he  suddenly  remembered 
that  his  mother  had  started  from  New  York  at  such 
a  date  that  the  steamers  would  soon  be  in  commu- 
nication by  wireless  telegraphy.  The  opportunity 
came  shortly,  and  he  promptly  telegraphed  his 
mother  for  three  hundred  dollars.  She  deposited 
the  amount  with  the  purser  on  her  steamer,  and  he 
requested  the  purser  on  the  other  steamer  to  pay 
that  sum  to  the  young  prodigal.  The  message  that 
brought  such  quick  relief  cost  only  six  cents  a  word. 
This  tale  would  have  seemed  miraculous  a  hundred 
years  ago,  when  the  telegraph  was  not  invented, 


ABOUT  MONEY  69 

and  the  credit  system  of  commerce  was  not  so 
perfected. 

There  are  many  ways  of  sending  money.  Express 
companies  do  a  large  business  in  that  line,  and  here 
the  actual  money  is  sent,  not  drafts  or  checks ;  the 
rate  varies  with  the  distance  and  amount.  Some- 
times one  runs  short  of  money  in  the  mountains, 
where  there  are  no  banks,  and  to  pay  two  hundred 
dollars  would  bankrupt  the  local  post-office.  In  that 
case  one  may  send  a  check  for  the  money  wanted 
to  the  cashier  of  one's  home  bank,  with  instructions 
to  send  the  bank-bills  by  registered  mail,  at  one's 
own  risk ;  and  as  every  registered  letter  is  receipted 
for  by  every  person  who  handles  it,  the  risk  is  com- 
paratively small. 

In  sending  small  sums  use  postal  money-orders ; 
these  can  be  procured  at  any  post-office  and  cost 
three  cents  for  a  sum  under  two  dollars  and  a  half, 
and  upward  to  the  charge  for  the  maximum  amount, 
thirty  cents  for  one  hundred  dollars.  These  orders 
may  also  be  purchased  for  foreign  countries  at 
moderate  rates,  and  most  of  the  money  that  goes 
abroad,  from  the  laboring  classes  in  this  country  to 
their  kindred  in  other  lands,  goes  in  this  form.  At 
the  post-office  one  signs  an  application  giving  all 
needed  information  as  to  sender,  amount,  and  name 
and  address  of  the  receiver.  The  postmaster  then 
issues  the  order,  and  hands  it  with  a  stamped  re- 


70     EVERY-DAY  BUSINESS   FOR  WOMEN 

ceipt  to  the  applicant:  the  order  is  inclosed  in  a 
letter  to  the  party  needing  it,  but  the  receipt  should 
be  filled  in  with  the  name  and  amount,  so  that  it 
completely  registers  the  transaction,  and  kept  un- 
til the  receipt  of  the  order  is  acknowleged.  In  case 
the  order  is  lost,  if  this  receipt  can  be  produced, 
and  the  party  to  whom  you  sent  it  will  sign  a  paper 
declaring  that  she  never  received  it  or  cashed  it, 
the  department  will  issue  a  new  order. 

Like  a  check,  a  post-office  order  may  be  depos- 
ited in  bank,  or  transferred  to  another  party  by 
indorsement ;  but  only  one  indorsement  is  allowed. 
Unlike  a  check,  however,  it  need  not  be  cashed 
immediately,  but  is  good  for  its  face  value,  at  the 
office  on  which  it  was  issued,  if  presented  for  pay- 
ment within  one  year.  After  that  time,  and  within 
seven  years,  the  government  will  redeem  it  by 
issuing  a  treasury  warrant  for  the  amount ;  but 
there  is  much  official  red-tape  about  this  proce- 
dure. 

These  domestic  orders  may  be  bought,  payable 
to  one's  own  order,  at  one's  home  office,  and  held 
for  seven  years  :  this  makes  a  savings  bank  of  the 
Post  Office  Department,  and  is  intended  for  those 
who  distrust  banks,  and  have  no  safe  place  for  their 
money.  This  is  a  recent  ruling  of  the  department. 

In  this  country,  when  one  receives  an  order  she 
must  present  it  at  the  post-office,  and  receipt  the 


ABOUT   MONEY  71 

order  before  it  will  be  paid,  unless  she  has  trans- 
ferred it  by  indorsement.  But  in  Germany  and 
Austria  a  special  carrier,  known  as  the  **  Geldbrief- 
trager,"  or  money  letter-carrier,  comes  to  the 
house,  and  pays  the  money  to  the  person  to  whom 
it  was  sent.  Of  course  he  expects  a  fee  for  the  ser- 
vice, but  this  is  usually  ungrudgingly  bestowed,  as 
the  convenience  is  very  great.  As  the  Postal  Union 
includes  all  civilized  countries,  these  orders  are 
really  the  poor  man's  bank  drafts. 

Sometimes  people  take  the  risk  of  sending  green- 
backs in  letters.  This  is  not  a  wise  plan,  for  a  keen 
nose  will  smell  a  bank-bill  through  an  envelope, 
and  this  tempts  postal  clerks  to  dishonesty.  If  one 
persists  in  sending  money  in  this  way,  old  bills 
should  always  be  used,  as  the  odor  is  fainter,  and 
there  is  no  suspicious  crackle  to  betray  them,  as 
in  the  case  of  new  bills.  The  English  bank-note 
is  safer  to  send  than  ours,  for  it  is  merely  engraved 
on  bond  paper.  English  people  frequently  send  re- 
mittances to  friends  on  the  Continent  by  cutting 
a  bank-note  in  half,  and  sending  one  half  in  one 
letter  and  the  other  half  in  a  later  letter.  Upon 
the  receipt  of  the  second  half,  the  two  are  pasted 
together,  and  easily  cashed  at  any  bank ;  cutting 
the  bill  has  not  reduced  its  value.  So  too,  in  this 
country,  bills  that  are  accidentally  torn  may  be 
pasted  together  and  pass  as  good  money. 


72     EVERY-DAY  BUSINESS   FOR  WOMEN 

Sometimes  a  bill  becomes  torn,  and  part  is  lost, 
Dr  accidentally  destroyed ;  is  the  rest  of  any  value  ? 
If  three  fourths  of  the  bill  is  left,  and  the  holder 
will  take  oath  before  a  notary  public  that  the  bal- 
ance has  been  destroyed,  full  value  will  be  given 
for  the  fragment  at  any  bank.  After  a  great  fire, 
safes  in  which  much  paper  money  was  stored  are 
sent  to  the  Treasury  at  Washington ;  or  an  expert 
comes  to  the  vaults,  and  they  are  opened  in  his 
presence.  Bills  may  be  so  charred  that  they  would 
crumble  at  a  careless  touch,  yet  by  delicate  han- 
dling a  pile  can  be  separated,  and  the  numerals 
read,  and  then  these  bills  will  be  redeemed  by  the 
government.  Sometimes  a  rat  makes  her  nest  in  a 
wad  of  bills,  hidden  under  a  floor ;  and  even  these 
wrecks  may  be  deciphered  and  redeemed  ;  for  hav- 
ing given  a  note,  banks  and  the  government  are 
honest  enough  to  wish  to  redeem  it,  if  the  value 
can  be  proven. 

Money  is  often  carried  in  curious  ways :  some- 
times in  Wall  Street  one  may  see  messengers 
rushing  around  with  satchels,  which  they  carefully 
guard  because  they  are  filled  with  money.  Or  in 
front  of  a  great  bank  may  be  seen  a  large  wagon 
being  loaded  with  heavy,  iron-bound  boxes  ;  and 
four  or  five  men  are  mounted  on  the  wagon,  when 
it  drives  down  to  the  dock  to  load  its  contents  upon 
the  steamer ;  this  is  gold  for  Europe.  Much  the 


ABOUT  MONEY  73 

same  precautions  are  followed  when  money  is  sent 
from  the  Treasury  to  the  banks. 

But  of  all  foolish  ways  of  carrying  money,  the 
woman's  shopping-bag  is  the  worst :  it  is  so  easily 
snatched  from  her  wrist  or  belt,  that  it  excites  the 
cupidity  of  the  struggling  or  the  dishonest.  To  tuck 
the  purse  into  the  baby's  carriage,  or  give  it  to  him 
to  play  with,  are  such  transparently  foolish  actions 
that  it  seems  strange  that  any  intelligent  person 
would  be  guilty  of  them  ;  but  these  very  things  are 
done.  Most  wise  people,  when  traveling,  do  not 
keep  all  their  money  in  one  pocket,  so  that  in  case 
one  pocket  is  picked,  the  inner  one  may  supply 
their  immediate  needs.  Money  should  not  be  dis- 
played or  carelessly  left  under  pillows  or  in  drawers : 
it  is  a  temptation  to  those  who  need  money  and 
want  to  be  honest,  but  find  it  hard  to  resist  a  great 
temptation.  We  are  "  our  brother's  keeper  "  to  this 
extent. 

What  becomes  of  old  bills  }  We  know  that  they 
wear  out,  for  sometimes  a  bill  is  received  in  change 
that  is  so  old  and  dirty  that  it  can  hardly  be  read, 
and  one  feels  unclean  after  touching  it.  It  is  un- 
clean, and  a  bacteriologist  has  recently  counted 
over  twenty-six  thousand  germs  on  one  soiled  bank- 
bill  ;  and  these  germs  will  live  a  month  in  such  a 
place.  This  is  literally  "filthy  lucre."  Banks  can 
get  clean  bills  by  sending  old  ones  to  the  Treasury, 


74    EVERY-DAY  BUSINESS   FOR  WOMEN 

and  paying  the  cost  of  transportation  on  those 
sent  and  those  returned ;  all  first-class  city  banks 
incur  this  expense,  and  the  smaller  ones  would  do 
it  if  their  customers  demanded  it.  These  old  bills 
are  put  into  a  machine  known  as  a  macerator,  at 
the  Treasury  at  Washington,  and  there  they  are 
ground  into  a  liquid  pulp  by  the  action  of  sharp 
knives  and  water;  this  pulp  is  run  off  and  sold, 
chiefly  to  paper-manufacturers ;  some  of  it  goes  to 
dealers  who  mould  it  into  shapes  of  the  Monument, 
or  Lincoln's  head,  or  fancy  shapes,  and  label  the 
pieces,  "This  piece  contains  the  remains  of  $5000 
worth  of  bills  ";  and  these  are  bought  by  tourists. 
As  the  bills  are  mingled  in  the  macerator,  these 
value-labels  are  evidently  guesswork. 

There  is  another  kind  of  money  which  the  Trea- 
sury officials  desire,  and  that  is  counterfeits ;  that 
is,  clever  imitations  of  bills  of  various  denomina- 
tions. A  Treasury  note  costs  so  little  to  make,  that 
there  is  a  great  inducement  to  those  possessed  of 
some  ability  as  engravers,  and  smitten  with  the 
"  get-rich-quick  "  fever,  to  try  to  copy  them.  The 
government  takes  every  possible  precaution  to  guard 
against  this.  The  bills  are  printed  on  paper  shot 
with  silk  threads,  specially  made  for  the  govern- 
ment, every  sheet  of  which  is  counted  by  everybody 
who  touches  it,  from  the  time  it  is  made  until  it 
reaches  the  banks  as  money :  this  is  to  guard  against 


ABOUT   MONEY  75 

its  loss  by  theft.  Very  elaborate  and  intricate  scroll- 
work, or  ornamental  borders,  are  put  upon  them, 
and  the  plates  are  made  by  the  most  skillful  en- 
gravers, with  the  result  that  our  "bank-bills  are 
works  of  art."  Sometimes  the  counterfeits  are  really 
very  good,  sometimes  they  are  merely  photographed 
on  poor  paper,  and  then  soiled  so  that  they  will  not 
be  quickly  noticed.  The  Secret-Service  men  of  the 
Treasury  Department  are  constantly  on  the  lookout 
for  these,  and  the  Treasury  sends  out  a  special  warn- 
ing to  the  public  whenever  a  new  counterfeit  is  dis- 
covered. It  is  rather  hard  for  most  people  to  detect 
them,  therefore  one  should  notice  the  announce- 
ments of  counterfeits  in  the  papers.  One  should 
also  avoid  taking  much  worn  and  mutilated  coins, 
for  even  if  genuine  they  do  not  represent  their  full 
value. 

The  phrase  "legal  tender,"  referring  to  money, 
means  that  certain  forms  of  money  may  by  law  be 
offered  in  the  payment  of  debt.  The  gold  coins  of 
the  United  States  and  silver  dollars  are  legal  tender 
"  for  all  debts,  except  where  otherwise  expressly 
stipulated  in  the  contract."  A  debt  of  more  than 
ten  dollars  cannot  legally  be  paid  in  half-dollars, 
quarters,  dimes,  nickels,  or  cents ;  and  one  cannot 
pay  a  debt  of  more  than  twenty-five  cents  in  nickels 
or  cents. 

There  are  other  forms  of  legal  tender  authorized 


76     EVERY-DAY  BUSINESS   FOR  WOMEN 

by  the  government  besides  gold  and  silver ;  these 
are  Treasury  notes  and  gold  and  silver  certificates, 
issued  by  the  United  States  Treasury ;  and  bank- 
notes, constituting  a  part  of  the  national  currency, 
issued  by  the  various  banks,  under  the  authority  and 
supervision  of  the  United  States  Comptroller  of  the 
Currency. 

Treasury  notes  bear  the  following  inscription  on 
the  face :  "  The  United  States  of  America  will  pay 
to  the  Bearer  One  Dollar  in  coin."  The  back  reads : 
"This  note  is  legal  tender  at  its  face-value  in  pay^ 
ment  of  all  debts  public  and  private,  except  when 
otherwise  expressly  stipulated  in  the  contract.  Legal 
Tender  Act,  July  14,  1890." 

The  face  of  the  silver  certificate  reads :  "  This 
certifies  that  there  has  been  deposited  in  the  Trea- 
sury of  the  United  States  One  Silver  Dollar,  payable 
to  the  bearer  on  demand."  The  back  reads  :  "This 
certificate  is  receivable  for  customs,  taxes,  and  all 
public  dues,  and  when  so  received  may  be  reissued." 
The  gold  certificate  bears  similar  inscriptions,  but 
calls  for  gold  instead  of  silver  dollars.  Recent  legis- 
lation has  made  the  silver  certificate,  or  any  United 
States  note,  redeemable  in  gold  at  the  holder's  op- 
tion. This  power  of  exchanging  all  forms  of  money 
for  gold,  at  their  face  value,  gives  us  a  gold  standard 
for  national  finances. 

National  bank  currency  bears  these  inscriptions, 


ABOUT   MONEY  77 

for  example  :  the  face  reads  :  "  Secured  by  United 
States  bonds  or  other  securities  —  National  Cur- 
rency," and  is  signed  by  the  Register  of  the  Trea- 
sury and  the  Treasurer  of  the  United  States.  Then 
follows  the  statement  that  "  The  First  National 
Bank  of  the  City  of  New  York  will  pay  the  bearer 
on  demand  Five  Dollars.  New  York,  February  26, 
1906."  This  is  signed  by  the  president  and  cashier 
of  the  bank.  The  back  reads :  "  This  note  is  receiv- 
able at  par  in  all  parts  of  the  United  States  in  pay- 
ment of  all  taxes  and  excises  and  all  other  dues 
to  the  United  States,  except  duties  on  imports,  and 
also  for  all  salaries  and  other  debts  and  demands 
owing  by  the  United  States  to  individuals,  corpora- 
tions and  associations  within  the  United  States  ex- 
cept interest  on  public  debt." 

These  notes  are  more  convenient  to  handle  than 
coin,  and,  in  the  case  of  bank-notes,  they  actually 
serve  to  keep  a  greater  value  in  circulation  than 
would  be  possible  otherwise.  The  notes  issued  by 
a  bank  are  really  promissory  notes  which  the  gov- 
ernment allows  the  bank  to  issue,  on  condition  that 
its  issue  does  not  exceed  one  hundred  per  cent 
of  the  par  value  of  the  bonds  held  for  the  bank 
in  the  Treasury.  These  bank-notes  circulate  in  the 
community  as  money ;  and  so  the  fifty  thousand 
dollars*  worth  of  bonds  that  a  bank  has  on  deposit 
guarantee  its  issue  of  fifty  thousand  dollars'  worth 


78     EVERY-DAY  BUSINESS   FOR  WOMEN 

of  notes,  and  the  bank  retains  the  use  of  all  its 
dollars. 

We  will  not  enter  here  into  a  discussion  of  paper 
money  ;  but  a  bank's  paper  circulates  only  when  a 
bank's  credit  is  good,  and  the  holders  believe  it  pos- 
sible to  get  coin  at  any  time  in  exchange  for  the 
bank-notes.  There  is  an  amusing  story  told  of  a 
Scotchwoman  who  went  into  a  bank  to  get  a  five- 
pound  note  changed  for  gold  ;  the  teller  declined  to 
do  this,  but  finally  yielded  to  the  woman's  persua- 
sion and  gave  her  five  one-pound  notes  of  their  own 
issue.  The  canny  Scotchwoman  waited  awhile,  and 
then  came  again  to  the  counter  and  asked,  "  You  *1I 
surely  give  me  gold  for  your  own  bank-notes,  will 
ye  not  ? "  Wrathfully  the  teller  did  as  she  asked, 
for  to  have  refused  would  have  discredited  their 
notes,  as  the  idea  would  have  gone  abroad  that  their 
notes  were  not  good  for  gold. 

If  a  bank  fails,  the  securities  deposited  at  the 
Treasury  are  held  by  the  Comptroller  until  all  that 
bank's  issue  of  notes  is  protected  by  its  assets ;  if 
these  funds  are  not  sufficient  then  the  bonds  are 
sold  to  redeem  the  notes.  Formerly  no  such  precau- 
tions were  taken,  and  the  failure  of  a  bank  made 
all  its  notes  worthless;  furthermore,  they  did  not 
circulate  outside  the  bank's  territory,  as  they  were 
unsecured  and  were  only  the  bank's  promissory 
notes ;  but  now  that  the  government  regulates  and 


ABOUT   MONEY  79 

supervises  their  issue,  they  circulate  all  over  the 
country.  Besides  saving  the  wear  and  tear  of  actual 
coin,  this  paper  money  is  a  great  convenience  for 
every-day  use. 

In  closing  this  chapter  on  money  it  may  be  well 
to  reiterate  that  the  office  of  money  is  to  serve  as  a 
medium  of  exchange  between  buyer  and  seller;  and 
that  paper  money  only  represents  value.  Some  gold 
coins  are  really  worth  their  weight  in  gold ;  but  most 
of  them  have  a  baser  metal  mixed  with  them  in  order 
to  give  them  the  hardness  necessary  for  a  coin  which 
is  to  pass  through  many  hands.  Silver  coins  are  even 
less  valuable,  so  that  one  may  fairly  say  that  money 
only  represents  value,  and  derives  its  ability  to  serve 
in  exchange  for  values  from  the  fact  that  the  stamp 
of  the  government  is  on  it;  money  is  really  the 
promissory  note  of  the  institution  issuing  it,  whether 
bank  or  Treasury,  and  circulates  only  when  the 
credit  of  the  giver  of  the  notes  is  good.  A  striking 
illustration  of  this  fundamental  truth  was  given  by 
the  paper  currency  of  the  Confederate  States.  Men 
who  had  thousands  of  it  in  their  strong-boxes 
awoke  on  the  morning  after  Sherman  had  entered 
their  city,  to  find  the  notes  not  worth  the  paper  on 
which  they  were  printed.  This  paper  money  issued 
by  the  Confederate  States  is  a  pathetic  souvenir 
of  blasted  hopes.  The  inscription  runs :  "  Two  Years 
after  the  ratification  of  a  treaty  of  peace  between 


8o    EVERY-DAY  BUSINESS   FOR  WOMEN 

the  Confederate  States  and  the  United  States,  the 
Confederate  States  of  America  will  pay  to  Bearer 
Five  Dollars."  The  note  from  which  this  inscrip- 
tion was  copied  was  dated  February  17,  1864.  So 
rapidly  did  this  currency  depreciate,  in  the  closing 
years  of  the  Civil  War,  that  at  the  last  it  took  a 
basketful  of  the  money  for  a  lesser  quantity  of 
marketing. 

That  paper  money  has  no  value  in  itself,  was 
proven  many  times  during  the  War  of  the  Revolu- 
tion, and  afterwards.  The  currency  depreciated  so 
much,  that  Congress  was  compelled  to  pass  laws 
commanding  the  people  to  receive  its  paper  for 
money ;  the  credit  of  the  Congress  was  gone,  and 
the  cause  seemed  hopeless.  Possibly  our  phrase, 
"Not  worth  a  continental,"  dates  from  this  time. 

Behind  United  States  notes  stand  the  wealth 
and  the  credit  of  the  whole  government.  This  is 
the  reason  why  the  crime  of  counterfeiting  is  so 
severely  punished;  it  impairs  the  credit  of  the  state, 
and  causes  distrust  of  the  government's  financial 
promises.  A  counterfeit  is  really  a  forgery  against 
the  government,  a  stab  at  the  sovereignty  of  the 
state. 


CHAPTER  VII 

CONTRACTS 

Most  people  who  are  not  in  business  associate  the 
idea  of  contracts  with  the  building  of  houses,  or 
great  city  undertakings  such  as  laying  concrete 
pavements,  or  installing  waterworks,  or  building 
subways  or  river  tunnels  ;  and  therefore  very  natu- 
rally wonder  why  they  need  to  know  about  them. 
Especially  is  this  true  of  girls,  who  seem  to  act  upon 
the  supposition  that  for  every  business  emergency 
a  man  will  be  found  to  help  them.  But  this  isn't 
true  for  every  one,  nor  for  all  times  :  and  if  one 
thinks  a  minute  about  current  phrases,  she  will  re- 
member that  she  may  want  to  "  contract  a  bill,"  or 
perhaps  at  some  time  to  enter  into  a  marriage  con- 
tract. In  fact,  contracts  are  of  the  most  every-day 
occurrence,  and  we  are  constantly  making  them 
without  realizing  that  we  are  so  doing.  It  may  not 
be  too  much  to  say  that  two  people  cannot  be  con- 
cerned in  a  business  transaction  without  calling  a 
contract  into  existence. 

A  knowledge  of  the  principles  involved  in  a  con* 
tract,  and  of  the  rights  of  each  party  to  it,  is  there- 


82     EVERY-DAY  BUSINESS   FOR  WOMEN 

fore  necessary  for  every  one,  in  order  to  guard 
against  the  pitfalls  for  the  unwary  that  may  lurk  in 
a  seemingly  harmless  agreement. 

In  law  a  contract  is  defined  as  "  an  agreement 
enforcible  by  law."  The  important  part  about  a 
contract  is  that  two  or  more  minds  shall  mutually 
assent  to  a  given  proposition  ;  and  the  law  will  only 
enforce  contracts  which  have  been  made  by  those 
(i)  who  have  a  legal  capacity  to  contract,  (2)  where 
a  legal  consideration  has  been  given  for  the  promise 
contained  in  the  agreement,  and  (3)  where  the  sub- 
ject matter  of  the  agreement  is  lawful.  Let  us  ex- 
amine some  very  common  contracts. 

A  housekeeper  wishes  to  engage  a  man  or  a  maid 
for  the  house ;  one  applies  whose  appearance  and 
qualifications  please,  and  she  says,  "  I  will  give  you 
so  much  a  month  to  do  this  work."  The  applicant 
replies,  "Very  well,  ma'am,  I'll  come"  ;  and  ac- 
cordingly does  come  and  work  upon  that  under- 
standing. If  at  the  end  of  the  month  the  house- 
keeper should  decline  to  pay  the  wages  agreed  upon, 
because  the  servant  had  proven  incompetent,  the 
servant  could  sue  for  the  wages  promised,  and  re- 
cover them.  But  if  the  housekeeper  had  made  the 
amount  of  wages  conditional  upon  the  efficiency  of 
the  servant,  and  the  servant  had  agreed  to  have  the 
employer  decide  that  question  later,  she  could  not 
have  sued  for  more  than  the  employer  thought  it 


CONTRACTS  83 

proper  to  give.  In  both  cases  there  was  mutual  as- 
sent to  a  definite  proposition. 

Take  another  case.  A  man  hails  a  street-car  and 
enters  it,  expecting  to  be  carried  to  the  destination 
named  on  the  sign-boards  of  the  car,  upon  payment 
of  the  fare.  Not  a  word  need  be  said,  but  his  enter- 
ing the  car  makes  a  lawful  contract  between  the 
company  and  himself.  If  he  takes  advantage  of  the 
crowd,  and  fails  to  hand  his  fare  to  the  conductor, 
he  is  breaking  the  implied  contract,  and  is  guilty  of 
dishonesty  before  the  law. 

These  are  unwritten  contracts,  and  the  law  will 
enforce  them  on  the  ground  that,  since  both  parties 
have  acted  upon  the  agreement,  the  understanding 
must  have  been  mutual,  and  therefore  the  obliga- 
tion is  binding.  A  great  many  of  these  unwritten 
contracts  are  broken  by  people  whose  sense  of 
justice  is  low,  or  is  killed  by  their  selfishness ;  and 
the  cases  never  come  to  court,  because  the  other 
party  either  does  not  know  his  rights,  or  refrains 
for  business  reasons,  chiefly  the  fear  of  offending 
a  large  circle  of  people  who  are  friends  of  the 
breaker  of  contracts,  or  because  of  the  expense  of 
a  lawsuit. 

One  makes  a  contract  with  a  railroad  company 
by  buying  a  ticket  and  checking  baggage  thereon. 
On  long-distance  tickets  one  finds  a  great  deal  of 
printed  matter,  nearly  every  clause  of  which  has 


84     EVERY-DAY  BUSINESS   FOR  WOMEN 

the  history  of  a  lawsuit  behind  it.  Take  for  instance 
the  clause  limiting  the  amount  of  baggage  carried 
to  one  hundred  and  fifty  pounds,  and  the  damages 
that  may  be  claimed  for  it,  if  lost,  to  one  hundred 
dollars.  That  saves  the  roads  annually  an  immense 
sum,  for  by  using  that  ticket  the  passenger  has 
agreed  not  to  ask  greater  damages,  no  matter  how 
great  the  value  of  his  baggage  really  is.  Nearly  all 
time-tables  contain  the  statement:  "The  company 
does  not  guarantee  the  time  of  arrival  of  trains." 
This  has  been  done  because  men  of  large  affairs  sued 
a  road  for  a  large  amount,  on  account  of  the  business 
loss  incurred  by  a  two  hours'  delay  on  the  road, 
and  recovered  damages.  This  would  be  impossible 
under  the  clause  now  used. 

Every  telegram  is  sent  under  a  contract  with  the 
company,  the  conditions  of  which  are  printed  on  the 
back  of  the  blank  form,  and  which  should  be  care- 
fully read.  Every  express  receipt  is  such  a  contract, 
and  every  bill  of  lading  for  freight.  A  lease  of  a 
house  and  a  deed  of  sale  are  both  contracts.  If  the 
catalogue  of  an  institution  states  that  the  tuition  is 
so  much  for  the  year,  and  no  pupils  are  accepted  for 
a  shorter  time,  the  parents  are  legally  bound  to  pay 
for  the  whole  time,  if  the  child  has  been  withdrawn 
after  only  a  month's  schooling.  If  one  engages 
rooms  at  a  hotel  for  a  definite  time,  and  the  circu- 
lar of  that  hotel  states  that  rooms  engaged  must  be 


CONTRACTS  85 

paid  for,  he  must  pay  for  them  even  though  he 
never  occupied  them. 

To  sum  up  the  matter,  then,  we  may  say  that  a 
contract  is  an  offer  made  by  one  party  to  do  some- 
thing which  he  has  a  legal  right  to  do,  and  an  ac- 
ceptance of  that  offer  by  the  other  party ;  and  this 
offer  and  acceptance  may  be  made  either  by  words 
or  by  acts. 

As,  however,  it  is  very  important  that  an  offer 
should  be  stated  in  definite  terms  and  to  a  definite 
person,  it  is  well  to  have  the  contract  in  writing ; 
there  is  thus  less  liability  to  mistake  its  terms,  and 
less  excuse  for  failure  to  comply  with  its  conditions. 
A  man  who  offers  a  reward  for  the  finding  of  lost 
property  is  bound  to  pay  that  reward,  because  it  is 
a  definite  agreement  with  a  person,  at  first  un- 
known, but  known  as  soon  as  he  presents  himself 
with  the  lost  article.  A  shop-girl  in  New  York,  a 
few  winters  ago,  found  a  pretty  necklace,  and  put 
it  on.  Her  companions  in  the  shop  admired  it  very 
much,  and  some  of  them  insisted  that  it  was  valu- 
able. So  she  went  to  a  jeweler  with  it,  and  he  re- 
cognized it  as  one  that  was  advertised,  and  for  which 
a  reward  of  five  hundred  dollars  was  offered.  The 
girl  took  it  to  the  address  given,  but  the  owner 
gave  her  only  fifty  dollars.  Upon  the  advice  of  a 
lawyer,  her  father  sued  for  the  whole  reward,  and 
obtained  it. 


86     EVERY-DAY  BUSINESS   FOR  WOMEN 

One  may  briefly  summarize  the  law  of  contracts 
thus :  A  definite  offer  must  be  made  to  a  definite 
person,  and  by  him  accepted  without  new  condi- 
tions; the  acceptance  must  be  identical  with  the 
offer.  An  offer  to  do  or  sell  does  not  become  a 
contract  by  which  one  is  bound  until  it  is  accepted ; 
and  after  a  reasonable  time  has  passed,  the  offer  is 
not  binding  if  the  offerer  chooses  to  withdraw  it ; 
but  he  should  give  notice  of  the  withdrawal.  If  the 
offer  is  not  a  verbal  one,  made  in  person,  it  is  safe 
to  follow  the  advice  of  Sir  Frederick  Pollock,  the 
English  lawyer,  "that  every  prudent  man  who 
makes  an  offer  of  any  importance  by  letter  should 
expressly  make  it  conditional  on  his  actual  receipt 
of  an  acceptance  within  some  definite  time."  A 
party  who  fails  to  perform  a  simple  contract  at  the 
agreed  time  must  be  sued  within  six  years  from 
that  time,  or  the  cause  of  the  action  will  be  out- 
lawed. 

In  order  that  the  contract  may  be  enforcible  by 
law,  it  must  show  a  "  detriment  to  the  promisee," 
—  that  is  what  the  legal  consideration  is  termed 
which  makes  the  contract  binding.  A  New  York 
court  recently  declined  to  enforce  a  contract  for 
forty-two  thousand  dollars,  because  no  considera- 
tion had  been  given  ;  the  contract  involved  the  sale 
of  a  business.  To  "  suffer  a  detriment,"  then,  means 
that  one  party  must  have  given  something  valuable 


CONTRACTS  87 

to  the  other,  —  either  money,  real  property,  or 
simply  the  temporary  surrender  of  ownership  or 
other  legal  rights  which  he  held  in  the  thing  given. 
If  I  lend  my  watch  to  a  person  at  his  request,  upon 
his  promise  to  return  it  at  a  given  time  in  good 
condition,  I  have  "  suffered  a  detriment,"  or  given 
a  legal  consideration,  which  makes  his  verbal  pro- 
mise a  binding  contract:  and  if  he  loses  or  injures 
the  watch,  I  could  sue  him  for  the  loss  or  damage 
incurred.  It  is  important  to  notice  that  the  detri- 
ment must  be  suffered  at  the  request  of  the  pro- 
miser,  in  order  to  make  a  legal  claim.  If  a  man.  A, 
sees  his  neighbor  B's  valuable  horse  running  away, 
and  leaves  his  work  to  catch  it  and  return  it  to  B, 
he  cannot  exact  damages  from  B  for  the  time  and 
labor  lost,  because  he  did  it  without  B's  request,  so 
there  was  no  contract.  Public  opinion,  however, 
would  call  B  a  sordid  soul,  or  a  mean  man,  if  he 
failed  to  recompense  A,  and  his  property  would 
probably  be  left  to  care  for  itself  at  the  next  emer- 
gency. The  Mosaic  Code  expressly  commanded 
such  acts  of  neighborliness,  without  hope  of  a  re- 
ward,^ but  our  law  does  not  require  them. 

Not  every  one  is  legally  qualified  to  make  a  con- 
tract :  generally  persons  in  business  possess  that 
capacity,  but  there  are  exceptions.  Citizens  of  a 
country  with  which  we  are  at  war,  and  who  live  in 

^  Exodus  zxiii,  4. 


88     EVERY-DAY  BUSINESS   FOR  WOMEN 

that  country,  cannot  make  legal  contracts  during 
the  continuance  of  that  war ;  if  they  live  in  our 
country  they  can  do  so.  Thus  a  citizen  of  Spain, 
at  Barcelona,  in  the  time  of  the  Spanish-American 
War,  could  not  have  carried  on  his  American  busi- 
ness. If  he  transferred  his  residence  to  New  York, 
he  could  have  made  valid  contracts. 

Convicted  criminals  serving  sentences  in  prison, 
and  outlaws  who  cannot  be  reached  by  extradition 
treaties  and  brought  back  to  prison,  are  alike  in- 
capable of  making  valid  contracts,  —  that  is,  such 
contracts  as  the  law  will  enforce. 

The  common  law  formerly  held  all  married  women 
incapable  of  contracting  ;  for  at  marriage  the  twain 
became  a  legal  one,  and  the  husband  was  the  one. 
He  could  collect  and  use  all  debts  owing  to  her, 
and  became  absolute  owner  of  all  her  personal  pro- 
perty ;  but  he  was  bound  to  support  her  in  suitable 
style,  and  pay  all  her  bills,  even  those  contracted 
before  her  marriage.  It  was  for  this  reason  that 
Patti  never  sang  in  France  until  after  her  second 
marriage :  because  French  law  gave  the  marquis 
the  right  to  her  immense  earnings.  This  old  law 
has  now  been  changed  in  England,  and  in  most  of 
our  American  states,  although  it  was  still  in  force 
in  the  District  of  Columbia  as  late  as  1894. 

Another  large  class  who  are  incapacitated  from 
making  contracts  are  infants,  legal  infants,  which 


CONTRACTS  89 

usually  means  persons  under  twenty-one  years  of 
age ;  this  is  the  common  age  for  either  a  man  or 
a  woman  to  attain  legal  majority.  Exceptions  are 
made  by  many  states  in  the  case  of  women,  because 
they  mature  earlier  than  men.  In  Arkansas,  Cali- 
fornia, Idaho,  Illinois,  Iowa,  Kansas,  Maryland,  Min- 
nesota, Missouri,  Nebraska,  Nevada,  North  Dakota, 
Ohio,  Oregon,  South  Dakota,  Vermont,  and  Wash- 
ington, a  woman  becomes  of  age  at  eighteen.  In 
Maryland  and  Oregon,  however,  she  must  be  married 
at  eighteen  to  attain  this  right;  while  in  Nebraska 
she  reaches  it  at  sixteen,  if  married;  and  in  Wash- 
ington her  marriage  to  a  man  of  full  age  renders  her 
of  age  also.  In  Iowa,  Louisiana,  and  Texas,  an  infant 
of  either  sex  becomes  of  age  upon  marriage. 

But  it  happens  that  such  infants  frequently  make 
contracts  :  can  they  be  enforced }  The  consensus 
of  opinion  seems  to  be  that  when  the  infant  comes 
of  age  he  may  repudiate  them,  or  ratify  them,  as 
he  chooses ;  that  is,  he  may  pay  or  not  pay,  as  he 
chooses,  and  the  other  party  has  no  redress.  In  the 
phraseology  of  the  law,  they  are  "voidable."  This 
applies  to  all  contracts  except  that  of  marriage, 
and  since  that  is  more  than  a  business  transaction 
and  concerns  the  welfare  of  society,  it  cannot  be 
annulled  without  due  process  of  law.  Further,  al- 
though an  infant  cannot  be  held  for  a  contract,  yet 
if  he  has  bought  necessaries  of  life  and  promised  to 


90     EVERY-DAY  BUSINESS   FOR  WOMEN 

pay  for  them,  the  tradesman  can  by  a  suit  recover 
the  real  value  of  the  articles  furnished,  although 
not  the  fancy  price  he  may  have  charged  the  inno- 
cent infant.  An  eminent  English  judge  defined  the 
term  thus  :  "  Necessaries  include  such  things  as  are 
fit  to  maintain  the  particular  person  in  the  state, 
degree,  and  station  in  life  in  v^hich  he  is."  Food 
and  clothing,  medicine  and  medical  attendance,  and 
educational  advantages  are  all  included  in  the  defi- 
nition. Minors  sometimes  take  advantage  of  this 
incapacity,  and  there  have  been  cases  known  where 
the  infant  had  sold  land  and  spent  the  money,  and 
then  when  he  came  of  age  repudiated  the  sale ; 
and  the  buyer  could  not  recover  his  money.  It 
seems,  therefore,  to  be  rather  unsafe  to  make  a 
contract  with  an  infant. 

Drunkards  and  lunatics  are  also  held  generally  to 
be  incapacitated  from  making  a  contract ;  and,  if 
made,  it  is  voidable  by  the  drunkard  or  lunatic, 
unless  the  contract  has  been  acted  upon,  and  it  is 
impossible  to  restore  things  to  the  condition  they 
were  in  before. 

Although  a  contract  may  express  mutual  assent 
to  a  definite  proposition,  and  may  be  made  for  a 
valuable  consideration,  and  by  parties  who  are  ca- 
pable of  contracting,  yet  if  the  subject-matter  is 
illegal,  the  law  will  not  enforce  it :  for  why  should 
part  of  the  machinery  of  the  law  be  set  in  motion 


CONTRACTS  91 

to  punish  a  man  for  not  doing  what  it  would  punish 
him  for,  if  he  had  done  it  ?  *'  If  one  bind  one's  self 
to  kill  a  man,  burn  a  house,  or  the  like,  it  is  void," 
has  been  legal  opinion  from  the  earliest  times  of 
law.  The  courts  have  annulled  contracts  which  were 
made  for  the  purpose  of  cheating,  defrauding,  or 
swindling  other  parties,  or  for  grossly  immoral  pur- 
poses ;  or  for  the  cornering  of  markets  or  the  sale 
of  "futures."  An  agreement  to  work  as  a  lobbyist 
or  to  pay  for  such  work  is  also  void ;  or  to  agree 
to  abstain  from  reporting  a  crime,  or  assisting  in 
its  prosecution  :  because  these  things  tend  to  cor- 
rupt the  public  service,  and  inflict  damage  upon 
the  commonwealth. 

A  bargain  like  that  which  Judas  Iscariot  made 
with  the  Jewish  officials  to  betray  his  Master  for 
thirty  pieces  of  silver,  could  not  be  enforced  in  a 
court  of  law  to-day.  If  a  man  saw  a  murder  com- 
mitted, and  the  murderer  offered  him  a  large  sum 
of  money  to  keep  his  secret,  he  might  accept  the 
money,  and  then  fail  to  keep  his  agreement,  and 
the  contract  could  not  be  enforced  because  its 
subject-matter  was  illegal. 

Contracts  which  act  in  restraint  of  trade  are  held 
to  be  void,  because  they  tend  to  monopoly,  and  by 
stifling  competition  do  harm  to  the  innocent  pub- 
lic. 

There  are  still  other  answers  to  the  question, 


92     EVERY-DAY  BUSINESS   FOR  WOMEN 

"  When  is  a  contract  not  a  contract  ? "  For  although 
the  parties  to  a  contract  may  have  the  legal  capacity 
to  make  it,  although  the  subject-matter  may  be 
lawful,  and  a  due  consideration  may  have  been  re- 
ceived ;  yet  a  contract  is  not  therefore  absolutely 
unbreakable,  if  it  can  be  shown  that  by  reason  of 
mistake,  misrep7'esentation,  fraudy  duress ,  or  undue 
influence  the  two  parties  did  not  really  agree  in 
making  the  contract,  although  they  appeared  to 
do  so. 

If  you  order  goods  from  your  grocer,  and  are 
accustomed  to  have  a  certain  brand,  and  he  sends 
instead  a  different  one,  you  are  not  bound  to  keep 
or  to  pay  for  the  goods.  Or,  if  you  send  an  order 
for  goods  to  a  store  where  you  have  always  traded, 
and  in  the  mean  time  the  store  has  changed  hands 
and  the  new  owner  fills  your  order,  without  advis- 
ing you  that  he  has  succeeded  to  the  business,  you 
cannot  be  required  to  keep  the  goods,  because  you 
were  mistaken  as  to  the  identity  of  the  shopkeeper, 
and  did  not  intend  to  deal  with  the  new  one. 
Sometimes  a  man  signs  what  he  thinks  is  an  order 
or  an  agreement  to  pay  so  much  for  implements, 
or  sewing-machines,  or  a  piano ;  and  the  document 
is  so  manipulated  that  it  appears  that  he  has  really 
signed  a  note  for  the  full  amount ;  the  agent  then 
gets  the  note  discounted  at  a  bank  and  disappears, 
without  delivering  any  goods.    In  such  a  case  the 


CONTEACTS  93 

man  need  not  pay  the  note,  if  he  can  prove  that  the 
paper  has  been  changed  since  he  signed  it,  and 
that  he  did  not  intend  to  make  a  note.  The  bank 
would  lose  the  money  it  had  advanced  on  the  note. 

Misrepresentatio7is  on  the  part  of  one  person  will 
not  affect  the  contract,  unless  some  mention  of 
them  is  incorporated  in  the  contract.  A  dealer  try- 
ing to  sell  a  fur-coat  will  of  course  praise  it ;  if  the 
buyer  is  wary  enough  to  buy  it  on  condition  that  it 
has  no  defect,  he  can  recover  its  price  if  he  finds 
an  imperfection.  If  he  took  his  chances  with  the 
dealer,  he  must  abide  by  the  result. 

Fraud  is  defined  as  '*a  willful  or  reckless  mis- 
statement of  fact  by  one  party  for  the  purpose  of 
actually  inducing  the  other  party  to  assent  to  the 
terms  of  the  contract."  Sometimes  people  are  care- 
less about  the  arguments  they  bring  forward  as  in- 
ducements, and  often  they  deliberately  lie  for  the 
sake  of  making  a  bargain.  Sometimes  the  lie  is 
acted,  and  the  man  who  uses  paint  or  putty  to  con- 
ceal defects  in  his  wares  is  guilty  of  fraud.  The 
law  does  not  hold  a  man  guilty  of  fraud  in  his  con- 
tracts, if  he  knows  something  that  would  make  the 
other  party  arrange  different  terms  if  the  second 
party  had  his  knowledge.  This  is  the  case  with  the 
man  who  discovers  oil  in  his  neighbor's  field,  and 
then  proceeds  to  buy  it  for  a  song  from  his  un- 
suspecting neighbor.    It  is  n't  the  Golden  Rule  in 


94     EVERY-DAY  BUSINESS   FOR  WOMEN 

business,  but  human  justice  falls  below  the  line  of 
Christian  brotherliness.  And  yet  even  the  law  will 
hold  a  man  culpable  if  he  suppresses  the  truth 
when  his  neighbor  asks  for  it.  A  man  who  has 
been  defrauded  in  a  contract  must  make  his  com- 
plaint promptly,  or  he  cannot  recover  damages. 
Nor,  if  an  innocent  third  party  has  come  between, 
can  he  recover :  he  will  have  to  fulfill  his  contract. 
Duress  means  a  forced  acceptance  of  a  contract. 
If  one  were  to  take  the  hand  and  guide  it  in  mak- 
ing a  signature,  or  hold  a  pistol  at  a  man's  head 
and  force  him  to  sign,  the  contract  thus  obtained 
could  not  be  enforced  against  his  will.  If  one  signs 
a  contract  under  threat  of  personal  violence,  or  of 
damage  to  one's  property,  or  under  threat  of  im- 
prisonment, or  threats  against  the  wife  or  husband, 
the  parent  or  child,  he  can  refuse  to  comply  with  it 
when  he  is  released  from  duress,  and  the  law  will  up- 
hold him.  And  if  a  man  adopted  or  took  advantage 
of  a  contract  which  he  knew  had  been  obtained  in 
this  way,  he  would  be  held  responsible  for  the 
violence.  Because  Harold  of  England  took,  under 
duress,  the  oath  not  to  contend  for  the  crown  of 
England  if  released,  he  did  not  feel  bound  by  it. 
Had  it  been  only  a  legal  contract  which  he  made 
with  William  of  Normandy,  this  would  have  been 
good  ground  for  breaking  it.  But  as  it  was  sworn 
over  the  bones  of  saints,  craftily  concealed  under 


CONTRACTS  95 

the  altar,  the  Church  denounced  the  act  as  sacri- 
lege and  lent  William  her  moral  support. 

Undue  Influence  is  the  taking  advantage  of  a 
confidential  position,  or  a  close  relationship,  or 
weakness  of  intellect  on  the  other's  part,  to  pro- 
cure assent  to  a  proposition :  it  is  a  sort  of  moral 
hypnotism  exercised  by  a  strong-willed  person  over 
one  who  is  younger,  or  fond,  or  simple-minded ; 
and  only  when  freed  from  that  influence,  and  in  a 
position  to  know  his  own  mind,  can  the  victim  of 
such  a  bargain  affirm  or  rescind  it.  A  century  ago 
many  marriage  contracts  were  obtained  in  this 
way. 

When  a  contract  is  once  made,  outsiders  should 
be  careful  about  interfering  with  its  execution. 
For  the  party  who  breaks  a  contract  is  liable  for 
damages,  and  some  courts  hold  that  a  man  who  in- 
terferes so  successfully  that  he  spoils  the  execution 
of  the  agreement  is  also  liable  for  these  damages. 

If  neither  party  has  done  anything  about  fulfill- 
ing the  terms  of  the  contract,  they  may  cancel  it 
by  mutual  consent.  When  a  man  wishes  to  fulfill 
his  contract,  and  a  money-value  is  involved,  it  is 
better  to  make  the  payment  in  cash ;  for  a  payment 
by  check  or  note  is  not  absolute  until  the  cash  has 
been  received  for  it.  If  a  man  fails  to  perform  his 
part  of  a  contract,  the  law  may  force  him  to  do  so, 
unless  the  damages  can  be  computed  in  money; 


96     EVERY-DAY  BUSINESS   FOR  WOMEN 

but  the  breach  of  contract,  or  failure  to  do  as 
agreed,  must  be  in  a  very  important  particular  be- 
fore the  courts  will  insist  upon  its  performance. 

The  subject  may  be  briefly  summed  up  thus  : 
Contracts  are  exact  agreements  between  two  or 
more  parties,  who  are  legally  capable,  who  are 
using  no  misrepresentation  or  fraud  or  force  to  in- 
duce a  signature,  where  free  consent  is  obtained 
without  violence ;  and  when  contracts  are  so  formed, 
the  law  will  force  the  parties  to  stay  of  the  same 
mind  and  execute  their  mutual  agreement. 


CHAPTER  VIII 

BILLS   AND   RECEIPTS 

As  soon  as  money  was  invented,  and  man  had  an 
exchangeable  medium  for  values,  some  shiftless  but 
quick-witted  soul  invented  the  system  of  buying 
things  "  on  credit "  ;  that  is,  acquiring  goods  upon  a 
future  promise  to  pay.  Perhaps  he  was  a  farmer 
who  wanted  many  things  while  his  crop  was  grow- 
ing, and  so  agreed  to  pay  when  the  harvest  came ; 
or  a  would-be  fisherman,  who  bought  a  boat,  hoping 
to  pay  for  it  with  the  proceeds  of  his  catch.  Even 
now  each  cotton-planter  of  the  Southern  States 
agrees  to  send  all  his  cotton  to  a  man  known  as 
a  cotton  factor,  and  he  furnishes  all  that  the  plan- 
tation needs,  —  food,  medicine,  clothing,  books,  or 
anything  else,  —  and  waits  for  the  settlement  of  the 
account  until  the  crop  is  harvested.  This  was  the 
system  in  vogue  between  the  tobacco-planters  of 
Virginia  and  the  merchants  of  London,  in  Wash- 
ington's day  ;  the  merchant  was  their  banker. 

But  why  were  these  far-off  London  merchants 
willing  to  send  goods  without  receiving  cash  for 
them }  Why  will  a  dealer  allow  any  one  to  contract 
a  bill,  or  "  give  credit,"  as  the  phrase  goes  to-day  ? 


98     EVERY-DAY  BUSINESS  FOR  WOMEN 

Do  they  take  no  guarantees  for  their  own  protec- 
tion ?  and  what  are  these  guarantees  ?  Let  us 
answer  these  questions  in  order. 

The  dealer  gives  credit,  because  he  believes  — 
whence  the  term  credit,  from  credo  —  that  the  pur- 
chaser is  able  to  pay,  and  intends  to  pay,  when  the 
bill  is  presented  ;  and  a  dealer  usually  satisfies  him- 
self that  the  party  asking  credit  has  property  which 
might  be  levied  on  for  debt,  in  case  the  bill  was  not 
paid.  So  that  the  credit  is  merely  a  convenience ; 
one  may  shop  all  day  and  not  payout  a  single  cent, 
if  one's  credit  is  good  ;  and  it  is  a  fact  well  known 
to  the  wily  shopkeeper  that  a  woman  buys  much 
more  on  credit  than  she  would  if  she  paid  cash  at 
the  time.  Consequently  the  credit-system  is  one  to 
be  avoided  by  the  wise  and  thrifty. 

The  consequences  of  credit  are  sometimes  dis- 
astrous. In  the  case  of  a  planter  who  has  ordered 
largely  from  his  factor,  and  finds  his  crop  short,  it 
means  sad  things.  Often  the  whole  crop  is  insuffi- 
cient to  pay  his  indebtedness,  and  he  must  start 
the  next  year  in  debt ;  and  this  not  because  he  has 
miscalculated,  but  on  account  of  accident.  The 
severe  equinoctial  storms  at  the  South  come  just  at 
harvest-time,  and  the  high  tides  flood  the  low-lying 
rice  lands  ;  and  a  man  may  watch  a  thirty-thousand- 
dollar  crop  of  rice  go  sailing  off  on  the  salty  waters 
in  a  single  night.  Or  the  boll- weevil  may  attack  his 


BILLS  AND   RECEIPTS  99 

cotton  in  the  last  month,  just  before  harvest.  Credit 
of  this  sort  is  always  unsafe ;  but  all  forms  are 
dangerous,  even  though  imprisonment  for  debt  is 
no  longer  allowable.  The  tragic  story  of  Little 
Dorrit  was  partially  responsible  for  the  abolition  of 
that  law  in  England,  where  the  Marshalsea  prison 
was  a  place  of  terror.  It  was  to  provide  escape  from 
that  form  of  oppression  that  Oglethorpe,  the  phi- 
lanthropist, founded  the  Georgia  colony  in  1733. 

Army  and  navy  officers  are  sometimes  court- 
martialed  for  debt,  because  their  salaries  cannot  be 
attached ;  and  a  student  at  one  of  our  large  univer- 
sities was  not  allowed  to  receive  his  diploma,  because 
he  had  neglected  to  pay  his  board-bill,  and  the 
sheriff  attached  his  belongings  just  before  Com- 
mencement. The  dealer  sues  for  debt,  under  the  law 
governing  contracts  ;  for  when  a  bill  is  contracted, 
the  buyer  tacitly  agrees  to  pay  for  the  goods  ;  and 
if  he  fails  to  do  so,  he  breaks  his  contract. 

In  order  to  assist  merchants  nowadays  in  giving 
or  refusing  credit,  there  are  numerous  mercantile 
agencies,  whose  business  is  to  pry  into  every  man's 
affairs,  as  far  as  possible,  and  determine  his  finan- 
cial standing.  These  agencies  have  branches  all 
over  the  United  States,  and  some  of  them  are  in- 
ternational ;  so  that  it  is  possible  to  get  a  man's 
*'  business  rating,"  as  it  is  termed,  at  any  time,  if 
one  is  a  subscriber  to  the  agency. 


100     EVERY-DAY  BUSINESS   FOR  WOMEN 

Merchants  are  not  the  only  ones  to  whom  bills 
are  due :  doctors,  lawyers,  tailors,  dressmakers, 
servants,  and  others  who  render  services  of  one  sort 
or  another,  are  all  included  in  this  class  ;  and  some- 
times these  bills  are  the  hardest  to  collect,  for  the 
service  is  often  intellectual,  or  otherwise  not  tangi- 
ble. But  the  obligation  to  keep  the  contract  implied 
is  just  as  strong  as  in  the  former  case. 

There  is  an  amusing  story  told  of  a  countryman 
who  refused  to  pay  the  doctor  for  pulling  his  tooth, 
saying  that  the  doctor  had  not  earned  his  fee  be- 
cause the  tooth  came  out  easily.  A  short  time  after- 
wards he  sliced  off  the  tip  of  his  nose  with  a  scythe, 
and  went  to  the  doctor  for  repairs.  The  doctor  re- 
fused to  help  him  until  paid  for  the  tooth-extracting, 
and  also  in  advance  for  his  surgery.  The  helpless 
man  did  so,  exclaiming,  **  This  is  paying  through 
the  nose ! "  There  are  a  good  many  people,  other- 
wise quite  intelligent,  who  like  the  countryman 
object  to  paying  the  doctor's  fee.  One  of  these  was 
complaining  to  an  old  darky  that  the  surgeon  had 
charged  him  twenty-five  dollars  for  cutting  off  his 
leg.  "Dat  's  all  right,"  said  the  darky,  "he  charge 
you  five  dollars  for  cuttin'  it  off,  and  the  twenty 
dollars  for  the  know  how."  The  value  of  the  "know 
how  "  is  what  many  forget  when  they  come  to  pay 
the  bill. 

The  man  to  whom  a  bill  is  owing  is  termed  a 


BILLS  AND"  RECEIKfS-,  ;';.•  :  , ';     ^pi 

creditor^  because  he  has  believed ;  the  one  who  owes 
it,  is  termed  a  debtor^  because  he  ought  to  pay.  We 
have  already  spoken  of  the  recourse  to  law  that  is 
the  creditor's  last  resort;  why  is  it  not  always  used? 

Sometimes  because  the  sum  in  question  is  too 
small  to  warrant  the  expense.  Knowing  this,  there 
are  many  followers  of  Dick  Swiveller  of  **  Old  Cu- 
riosity Shop  "  fame,  who  sent  his  boy  to  a  different 
restaurant  each  day  for  his  dinner,  and  checked  off 
the  street  as  "  closed  "  where  he  owed  a  small  bill 
at  every  eating-house  on  it. 

Sometimes  the  deterring  cause  is  the  fear  of  los- 
ing patronage.  This  is  especially  true  of  tailors  and 
dressmakers  and  milliners  with  a  large  and  fashion- 
able clientele.  For  many  men  and  women  will  order 
clothes  that  they  cannot  or  will  not  pay  for ;  some- 
times through  sheer  carelessness,  sometimes  be 
cause  their  purses  are  not  equal  to  the  demands  oi 
their  social  position,  and  they  lack  the  courage  and 
honesty  to  acknowledge  it,  and  accept  the  altered 
situation.  In  either  event  the  result  is  the  same^ 
and  many  a  tailor  and  dressmaker  has  gone  into 
bankruptcy,  and  in  one  recent  case  the  woman 
committed  suicide,  with  large  assets  in  uncollecta 
ble  bills  against  fashionable  people.  They  did  not 
dare  bring  suit  to  recover  these,  for  fear  of  offend- 
ing the  other  paying  patrons  who  were  friends  ol 
the  delinquents. 


loi     KVEIIV-DAY  BUSINESS   FOR  WOMEN 

The  man  who  does  not  pay  his  servants  is  rated 
perhaps  the  lowest  of  all  in  common  estimation. 
The  fault  of  debt-dodging  is  not  a  new  one,  for,  in 
the  decadent  days  of  Judah,  Jeremiah  exclaimed, 
**  Woe  to  him  that  useth  his  neighbor's  service  with- 
out wages,  and  giveth  him  not  for  his  work." 

Bills  are  collected  at  law  by  proving  the  debt ; 
then  when  judgment  is  given  a  man's  property  may 
be  levied  on ;  that  is,  the  sheriff  may  seize  and  ex- 
pose it  for  sale ;  and  this  may  be  done  not  only 
with  real  estate,  but  with  furniture,  jewelry,  or  even 
clothing.  This  is  called  "  serving  an  attachment." 
Another  plan  is  to  garnishee^  or  trustee,  a  man's 
salary ;  that  is  to  say,  the  creditor  is  given  the  right 
to  seize,  by  an  officer,  the  man's  wages  before  they 
are  paid  to  him,  and  get  his  debt  paid  first  from  that 
sum.  This  cannot  be  done  to  any  salaries  paid  by 
the  government. 

Bills  are  often  paid  by  giving  the  creditor  a 
note,  due  in  so  many  months.  If  the  dealer  gives 
a  receipt  in  full  for  this  note,  he  cannot  afterwards 
collect  the  bill,  in  case  the  note  is  not  paid  when 
due.  To  provide  against  this  contingency  he  should 
write  on  the  bill,  "  Received  payment  by  note  for 
so  many  months."  This  was  the  cheerful  Mr.  Mi- 
cawber'sway:  when  he  was  confronted  with  a  debt 
he  simply  wrote  out  his  note,  and  exclaimed  with 
rehef,  "Thank  God,  that  obligation   is  settled!" 


BILLS  AND   RECEIPTS  103 

Such  a  method  of  settlement,  however,  finally 
stranded  him  in  the  Marshalsea. 

In  most  states  a  debt  is  outlawed,  that  is,  cannot 
be  collected  at  law,  after  six  years.  But  any  payment 
on  it  will  extend  the  time  six  years  from  the  date 
of  payment.  No  honest  man  would  take  advantage 
of  this  law. 

There  is  one  other  form  of  indebtedness  of  which 
mention  should  be  made;  these  are  *Mebts  of 
honor,"  so  called  because  they  are  obligations  that 
cannot  be  collected  at  law,  because  no  value  was 
given  in  exchange,  and  which  therefore  depend  for 
their  validity  upon  a  man's  word.  These  are  usu- 
ally gambling  debts,  and  their  usual  form  of  ac- 
knowledgment is  to  give  the  winner  a  card  with 
"I.  O.  U."  written  on  it,  and  a  statement  of  the 
amount,  signed  and  dated.  These  debts  are  usually 
promptly  paid,  because  a  man  is  socially  disgraced 
who  does  not  honor  his  obligations  of  this  sort. 

There  are  other  debts  which  are  not  collected  at 
law,  but  which  should  be  considered  none  the  less 
binding.  In  this  class  are  the  shares  of  expense  in- 
curred in  joint  pleasure  undertakings,  such  as  drives, 
suppers,  group-pictures,  and  the  like  ;  subscriptions 
promised  and  forgotten.  The  manner  of  meeting 
such  obligations  when  reminded  of  them  is  a  severe 
test  of  politeness.  Too  often  the  collector,  who  is 
unpaid,  is  treated  with  as  much  disfavor  as  if  she 


I04     EVERY-DAY  BUSINESS   FOR  WOMEN 

were  a  highway  robber.  Obligations  of  this  sort 
should  not  be  incurred  unless  one  is  able  to  meet 
them  promptly. 

Now  that  we  have  discussed  the  ethics  of  the 
subject,  let  us  come  to  the  commercial  forms  of 
bills.  A  bill  is  properly  made  out  thus  :  — 

John  Doe 

to  Richard  Roe  Dr, 

April  10,  To  merchandise  $100.00 

The  letters  Dr.  stand  for  debtor  ;  and  I  have  seen 
a  check,  sent  in  payment  of  a  bill,  made  payable  to 
the  order  of  "  Richard  Roe  Dr."  That  clerk  was 
evidently  unfamiliar  with  bookkeepers*  abbrevia- 
tions. 

Should  a  partial  payment  be  made  on  the  bill, 
the  creditor  writes  at  the  bottom  the  words  — 

By  Cash  $10.00 

Balance  due  $90.00 

After  a  partial  payment  has  been  made  on  a  bill, 
it  cannot  be  contested;  it  is  assumed  that  it  was 
found  correct  or  no  payment  would  have  been 
made  on  it ;  therefore,  bills  should  be  carefully  ex- 
amined before  paying  any  of  the  amount  called 
for.  If  there  is  any  error,  it  should  be  courteously 
pointed  out  to  the  creditor  ;  if  it  is  an  overcharge, 
assume  that  it  was  done  through  carelessness,  and 


BILLS  AND   RECEIPTS  105 

not  with  any  intention  to  cheat  you.  There  is  no 
class  more  tiresome  than  the  people  who  always 
imagine  that  some  one  is  trying  to  cheat  them.  If 
the  dealer  has  omitted  to  charge  for  goods  which 
you  have  received,  or  has  made  an  undercharge, 
you  cannot  remain  honest  unless  you  call  attention 
to  this  fact  also.  Now,  it  sometimes  happens  that 
a  dealer  will  decline  to  admit  a  mistake,  even  in 
his  favor,  preferring  a  reputation  for  correctness  to 
the  money  he  would  receive  by  acknowledging  his 
mistake.  This  system  prevails  at  the  large  Paris 
shops,  and  is  a  thoroughly  exasperating  one  to  the 
honest  and  exact  customer.  Usually  a  dealer  is 
grateful  for  such  a  token  of  honest  good-will  toward 
him.  The  principle  governing  one's  conduct  in  this 
business,  however,  is  not  affected  by  the  dealer's 
attitude. 

**  Balance  Due  "  means  that  so  much  remains  to 
be  paid.  When  a  bill  has  been  sent  once,  or  ren- 
dered, and  is  not  paid,  the  second  one  sent  is 
usually  not  itemized,  but  reads  simply,  "To  bill 
rendered,  ^100.00";  and  this  statement  we  there- 
fore interpret  thus :  a  bill  with  a  list  of  the  things 
charged  has  been  sent  once,  and  is  still  unpaid ; 
this  later  one  is  what  is  called  "  a  summary  bill." 

When  the  bill  is  paid  in  full,  the  creditor  writes 
below  the  total  of  the  indebtedness  the  words,  "  Re- 
ceived Payment,"  and  signs  his  name.  This  is  a 


io6     EVERY-DAY  BUSINESS   FOR  WOMEN 

receipt.  Sometimes  a  receipt  is  given  separately, 
and  then  it  should  read  after  this  style  :  "Received 
of  James  Roe  the  sum  of  Twenty-five  Dollars,  in 
full  of  all  demands  to  date";  and  is  signed  and 
dated.  This  is  the  most  satisfactory  form,  because 
a  receipt  so  written  recites  all  the  facts  in  the  case, 
and  is  written  evidence  that  the  indebtedness  is 
canceled. 

Receipts  should  be  carefully  kept,  for  careless 
bookkeepers  sometimes  send  a  bill  after  it  has  been 
paid ;  and  the  receipt  ends  any  claim  upon  you. 
For  this  reason  it  is  advisable  to  pay  bills  by  check, 
as  the  check  with  the  dealer's  indorsement  is  a 
proof  of  the  receipt  of  the  money  by  him.  It  is  a 
deplorable  fact  that  many  educated  people  do  not 
know  the  correct  form  for  a  receipt.  A  public- 
school  teacher  once  wrote  a  receipt  for  her  salary 
in  this  way :  "  I  got  the  money,"  and  signed  that 
statement.  This  was  as  great  a  display  of  ignorance 
of  business  etiquette,  as  if  she  had  accepted  an  in- 
vitation to  a  formal  dinner  by  writing  to  her  host- 
ess, "I'm  coming."  A  milliner  in  a  small  town 
receipted  a  bill  thus:  "Mrs.  Smith  has  paid  her 
bill,"  and  only  added  the  amount  and  date  at  the 
request  of  the  payer.  Uneducated  people  are  pain- 
fully suspicious  and  afraid  of  receipts,  especially 
about  giving  them.  They  seem  to  think  that  the 
signing  of  the  name  to  a  document  gives  the  holder 


BILLS  AND  RECEIPTS  107 

power  over  them.  But  for  all  that,  receipts  should 
always  be  required  when  money  is  paid  out ;  some 
careful  housekeepers  take  receipts  for  servants' 
wages. 

There  are  few  occupations  more  disagreeable 
than  that  of  a  bill-collector.  Perhaps  the  common 
hangman  is  most  nearly  his  equal ;  and  in  old  times 
the  hangman  had  to  sit  alone  at  church,  so  com- 
pletely was  he  beyond  the  pale  of  society.  Students 
and  others  often  decline  to  pay  bills  because  they 
do  not  like  the  tradesman's  manner,  as  if  that  les- 
sened the  moral  and  financial  obligation  ;  and  it  is 
this  attitude  which  is  largely  responsible  for  the 
bill-collector's  disagreeable  position. 

Sometimes  a  whole  circle  of  events  is  started  by 
the  payment  of  a  single  bill.  In  a  little  Austrian 
town  it  was  the  custom  for  the  men  to  meet  on  the 
bridge  on  January  i,  and  settle  all  the  accounts  for 
the  year  on  the  spot.  But  one  year  the  crops  had 
been  bad,  much  sickness  had  visited  the  town,  and 
few  travelers ;  so  there  was  a  lack  of  money.  A 
owed  B,  and  could  not  pay  him  ;  so  B  could  not  pay 
C  whom  he  owed ;  and  C  in  turn  could  not  meet 
his  obligation  to  D,  and  so  on.  Finally  one  man  ar- 
rived who  could  pay  his  indebtedness  in  money. 
Then  B  paid  C,  and  all  the  others  in  turn  squared 
their  accounts.  In  the  complications  of  business 
to-day  we  cannot  see  so  directly  the  beneficent 


io8     EVERY-DAY  BUSINESS   FOR  WOMEN 

result  of  our  debt-paying,  but  it  follows  just  as 
surely. 

We  may  briefly  sum  up  this  subject  thus:  — 

1.  Never  contract  a  bill  unless  you  are  able  to 
pay  it  when  presented. 

2.  Recognize  by  prompt  payment  all  just  de- 
mands. 

3.  Ascertain  the  correctness  of  a  bill  as  soon 
as  presented,  and  never  make  a  payment  on  a  bill 
until  this  has  been  done. 

4.  Never  allow  a  bill  to  become  outlawed ;  or  if 
this  happens  unavoidably,  never  take  advantage  of 
the  legal  term  to  escape  a  just  obligation. 

5.  Always  take  a  receipt,  and  see  that  it  is 
correct  in  form  and  statement. 

6.  Pay  bills,  whether  the  tradesman  is  un- 
pleasant or  not.  Do  not  trade  with  him  thereafter 
if  his  manner  is  objectionable. 

7.  And  finally,  the  safe  rule  is  the  apostolic 
advice :  "  Owe  no  man  anything,  but  to  love  one 
another." 


CHAPTER  IX 

EMPLOYER   AND    EMPLOYEE 

At  some  time  or  other  almost  everybody  is  either 
an  employer  or  an  employee.  And  as  the  domestic 
servant  is  the  most  frequent  employee,  let  us  con- 
sider that  relation  first.  It  is  not  our  purpose  to  at- 
tempt to  solve  this  most  vexing  question,  but  only 
to  point  out  the  reciprocal  rights  and  duties  of  each 
party. 

In  the  first  place,  when  a  servant  is  hired  the  em- 
ployer and  employee  enter  into  a  contract,  although 
not  a  written  one;  usually  its  conditions  are  dis- 
tinctly stated :  so  much  wages  per  week  or  month 
or  year ;  so  many  evenings  and  such  an  afternoon 
out ;  and  clear  mention  of  the  duties  which  the  ser- 
vant on  her  part  is  expected  to  perform.  It  is  well 
to  have  such  things  definitely  stated ;  for  while  local 
customs  would  interpret  the  contract  in  case  of  a 
dispute,  it  is  well  to  avoid  trouble  by  a  distinct 
previous  arrangement. 

In  such  a  contract  there  are  certain  things  that 
the  law  insists  upon,  although  neither  mistress  nor 
maid  may  mention  them.  On  the  servant's  part,  the 
law  demands  that  he  or  she  shall  exercise  ordinary 


no     EVERY-DAY  BUSINESS   FOR  WOMEN 

care,  skill,  diligence,  and  faithfulness  in  the  per- 
formance of  assigned  duties  ;  shall  be  respectful  in 
demeanor,  and  obedient  to  all  reasonable  demands, 
and  shall  not  be  insolent  in  speech  or  conduct ;  and 
that  she  shall  not  stay  out  all  night  without  express 
permission  to  do  so  from  the  employer.  On  the  part 
of  the  mistress,  the  law  requires  that  the  wages 
earned  must  be  promptly  paid  when  due ;  and  reason- 
able care  of,  and  consideration  for,  the  servant  is  the 
employer's  bounden  duty.  All  this  is  implied  in  the 
contract. 

This  contract  may  be  terminated,  like  others,  by 
mutual  agreement ;  or  by  either  party,  at  her  option, 
giving  due  notice  of  such  desire.  If  wages  are  paid 
by  the  week,  then  a  week's  notice  must  be  given; 
if  by  the  month,  then  a  month's  notice  is  required. 
If  this  is  not  done,  the  servant  may  legally  claim 
wages  until  the  expiration  of  the  wage-period. 

But  there  are  certain  causes  for  which  a  servant 
may  be  dismissed  instantly,  and  can  claim  wages 
only  to  the  time  of  dismissal.  These  causes  really 
constitute  a  breach  of  contract.  A  servant  may  be 
summarily  dismissed  for  insolence,  or  for  disobedi- 
ence to  orders,  or  for  gross  immorality,  or  for  stay- 
ing out  all  night,  or  for  such  lack  of  ordinary  care 
and  skill  that  she  damages  the  property  of  her  em- 
ployer ;  for  such  damage  she  is  also  liable  pecuni- 
arily :  for  instance,  if  she  piles  heavy  dishes  on  top 


EMPLOYER  AND  EMPLOYEE     iii 

of  fragile  ones,  and  thereby  breaks  them,  after  being 
warned  not  to  do  so,  she  may  be  required  to  pay  their 
cost,  or  may  be  discharged.  She  is  not  obliged  to 
pay  for  accidental  damage,  however,  unless  it  has 
been  specifically  agreed  between  them  that  she  shall 
do  so. 

Cruel  treatment  or  neglect  of  the  servant,  in  not 
providing  her  with  the  necessary  comforts  of  life,  is 
sufficient  cause  for  a  servant  to  leave  without  notice : 
and  in  case  of  cruel  treatment  she  can  also  sue  for 
damages. 

Although  the  wife  may  hire  the  servant,  the  hus- 
band is  recognized  as  the  employer,  unless  it  happens 
that  the  wife  has  an  independent  fortune,  and  makes 
the  wages  a  written  claim  upon  her  estate.  The 
husband,  therefore,  is  the  one  to  be  sued  for  a  dis- 
charge. In  case  of  the  death  of  the  head  of  the  house, 
the  contract  is  terminated,  and  the  servant  cannot 
be  compelled  to  stay;  but  any  other  death  in  the 
family  is  not  sufficient  cause  for  the  breaking  of  a 
contract,  and  the  law  would  force  the  servant  to  stay 
until  due  notice  had  been  given.  Colored  servants, 
and  also  Italians,  are  quite  apt  to  leave  a  place  as 
soon  as  a  death  occurs  in  the  family :  their  super- 
stition can  be  checked  by  the  enforcement  of  the 
employer's  legal  rights,  provided  death  has  not  ter- 
minated the  contract  on  his  part. 

A  curious  case  came  under  my  own  observation 


112     EVERY-DAY  BUSINESS   FOR  WOMEN 

recently.  A  chef  had  been  engaged  for  a  week  on 
trial;  at  the  end  of  that  time,  he  was  offered  his 
wages  and  told  to  go,  as  his  work  was  not  satisfac- 
tory. This  he  declined  to  do,  saying,  in  his  broken 
English,  that  he  was  doing  his  best,  and  therefore 
no  one  could  send  him  away  ;  and,  disobeying  orders, 
he  continued  to  use  his  employer's  materials  in  pre- 
paring a  meal.  A  policeman  was  sent  for,  and  the 
man  taken  to  the  station-house.  There  he  saw  the 
error  of  his  ways,  and  meekly  took  his  wages  and 
departed.  If  there  had  been  no  other  ground  of 
arrest  or  dismissal,  his  disobedience  of  orders  would 
have  been  sufficient. 

There  are  some  other  points  that  are  of  interest 
here.  If  an  employer  keeps  in  his  service  a  servant 
known  to  be  of  a  quarrelsome  or  dangerous  disposi- 
tion, he  is  liable  for  any  injury  that  such  servant 
may  inflict  on  any  other  servant  in  the  course  of  his 
work. 

If  an  employer  has  given  a  servant,  such  as  a 
cook,  authority  to  order  supplies,  he  must  pay  the 
bills,  no  matter  how  extravagant,  or  how  much  he 
suspects  has  gone  to  the  cook's  own  family.  If  he 
withdraws  this  authority,  the  dealers  and  tradesmen 
must  all  be  informed  of  this  fact. 

The  law  does  not  recognize  any  such  thing  as 
extra  work  in  domestic  service,  so  no  extra  pay  can 
be  claimed  for  any  unusual  service.  This  is  so  be- 


EMPLOYER  AND  EMPLOYEE     113 

cause  the  field  of  domestic  service  is  still  undefined. 
There  are  still  a  few  states  where  the  husband  of  a 
married  servant  can  collect  the  wages  due  to  her. 
But  most  states  now  recognize  the  legal  entity  of 
the  married  business  woman ;  so  that  the  hard- 
working woman  is  no  longer  compelled  to  see  her 
worthless  husband  collect  and  use  her  wages. 

When  a  servant  leaves  a  place  she  wants  a  recom- 
mendation from  the  mistress.  One  is  not  bound 
to  give  this ;  and,  moreover,  if  called  upon  by  a 
prospective  employer  for  a  recommendation,  may 
fearlessly  and  frankly  speak  her  just  opinion  of 
the  servant's  ability,  honesty,  and  trustworthiness ; 
and  though  her  report  may  cost  the  servant  the 
prospective  place,  she  cannot  sue  for  slander.  * 

The  following  authentic  story  will  illustrate  an- 
other point.  A  certain  lady,  who  had  been  enter- 
tained at  Mrs.  B's,  was  delighted  with  the  light 
flaky  biscuits  served  at  luncheon.  Next  day,  choos- 
ing a  time  when  Mrs.  B  was  out,  she  called,  inter- 
viewed the  servant  at  the  front  door,  and  by  an  offer 
of  higher  wages  induced  the  girl  to  leave  Mrs.  B 
and  come  to  her.  Apart  from  all  question  as  to  the 
courtesy  and  decency  of  such  an  act,  the  woman  laid 
herself  liable  to  a  suit  for  damages,  which  Mrs.  B 
might  have  brought,  but  did  not  for  social  reasons. 

Wages  unpaid  at  the  death  of  an  employer  in 

*  Mary  A.  Greene,  Woman's  Manual  of  Law ^  p.  no. 


114     EVERY-DAY  BUSINESS   FOR  WOMEN 

many  states  constitute  a  prior  claim  upon  the  estate, 
ranking  with  those  of  doctors  and  undertakers  as 
preferred  claims. 

This,  briefly  stated,  is  the  law  of  domestic  em- 
ployer and  employee.  But  the  scarcity  of  servants 
places  all  the  advantages  in  the  hands  of  the  ser- 
vant, who  may  by  contract  specifically  exempt  her- 
self from  all  penalties  consequent  upon  misdemean- 
ors, and  may  demand  for  herself  more  time  than 
the  mistress  has.  Here  the  great  law  of  supply  and 
demand  makes  legal  restrictions  useless ;  for  there 
are  many  mistresses  and  few  maids,  consequently 
few  mistresses  will  dismiss  a  maid  summarily  for 
any  of  these  legal  causes  :  it  is  usually  the  maid  who 
dismisses  the  mistress ! 

In  Germany  the  hand  of  the  law  is  everywhere 
evident  in  the  concerns  of  life  ;  much  more  so  than 
it  is  here,  where  many  people  are  unaware  that 
there  is  any  such  law  as  we  have  quoted  applying 
to  domestic  service.  All  these  causes  for  dismissal 
are  law  there  ;  and,  moreover,  a  servant  cannot  be 
dismissed  except  for  legal  cause,  no  matter  how 
angry  the  mistress  may  be  over  some  trivial  and 
perhaps  accidental  offense. 

There,  when  a  maid  enters  service  for  the  first 
time,  she  must  register  at  the  Police  Bureau,  giv- 
ing her  name,  her  home,  her  parents'  names,  and 
her  age.  A  book  is  then  given  her  by  the  police 


EMPLOYER  AND  EMPLOYEE     115 

official,  in  which  the  name  of  her  employer  is  writ- 
ten, with  the  date  of  entering  service.  When  she 
leaves  a  place,  she  must  report  at  the  bureau,  and 
the  mistress  must  furnish  the  police  with  the  reason 
for  leaving.  This  is  all  registered  ;  and  if  one  desires 
to  obtain  a  recommendation  for  a  servant  she  is 
about  to  engage,  she  may  obtain  from  the  records 
a  complete  history  of  the  domestic  service  of  the 
maid.  In  Wiirttemberg,  the  government  further 
requires  that  the  employer  shall  pay  monthly  a 
small  tax,  about  forty  cents,  called  Krankgeld,  or 
money  for  sickness.  This  entitles  the  servant  to 
free  treatment  at  the  dispensary  or  hospital  when 
necessary ;  but  to  obtain  it,  she  must  present  the 
book  in  which  the  policeman,  who  collects  the  tax, 
has  recorded  its  payment  to  date. 

In  Germany  custom,  stronger  than  any  sump- 
tuary law  could  be,  prescribes  a  modest  costume 
for  maids  :  no  hats,  plain  skirts,  and  clothes  of  quiet 
colors.  Contrast  these  meek  maids  with  our  hy- 
phenated American  variety,  clad  in  all  the  gorgeous 
colors  of  the  rainbow  ! 

But  there  are  other  employees  outside  the  domes- 
tic service;  and  for  these  the  same  obligations  rest. 
A  just  wage,  promptly  paid,  and  a  reasonable  care 
for  the  safety  and  comfort  of  the  employed,  are  the 
master's  duties  :  while  faithful  and  efficient  service, 
obedience,  and  respect  are  the  duties  of  the  one 


ii6     EVERY-DAY  BUSINESS   FOR  WOMEN 

employed.  In  places  where  the  work  is  dangerous, 
employers  are  required  to  protect  their  employees 
from  danger  by  safety  devices ;  and  if,  through  the 
failure  to  provide  these,  the  man  is  injured,  he 
can  recover  damages  from  his  employer.  In  some 
occupations  the  risk  is  partly  compensated  by  the 
high  wages  paid ;  and  in  powder-mills  the  men  are 
pensioned  if  injured  by  the  occasional  explosions. 
Many  states  have  very  careful  laws  concerning  an 
employer's  liability  for  his  employees,  and  espe- 
cially regulating  the  conditions  of  factory  labor; 
and  any  one  who  employs  a  large  number  of  labor- 
ers should  consult  the  state  law  on  that  subject. 

All  through  these  legal  safeguards  runs  the  idea 
that  the  master  and  the  man,  the  mistress  and  the 
maid  are  equal  in  the  eyes  of  the  law  and  alike  en- 
titled to  justice ;  that  a  contract  is  binding  on  both 
parties;  and  that  a  person  in  selling  his  services 
does  not  sell  his  human  rights,  or  forfeit  such  as 
are  necessary  to  the  preservation  of  the  order  of 
society. 

In  Germany,  and  generally  in  European  countries, 
the  doctrine  holds  that  the  servant  contracts  for  her 
time  as  well  as  her  services ;  and  that  if  the  work 
ordinarily  required  is  not  sufficient  to  occupy  the 
time,  more  must  be  found  :  she  must  knit  or  crochet 
for  the  family,  if  there  is  not  cooking  and  cleaning 
enough.  But  in  this  country  the  doctrine  is  begin- 


EMPLOYER  AND  EMPLOYEE     117 

ning  to  be  widely  preached  that  only  the  services 
are  hired,  not  the  time,  and  that  when  these  are 
performed  the  contract  is  fulfilled.  This  view  puts 
a  premium  on  efficiency,  but  also  opens  the  way  to 
many  perplexing  disputes. 

But  beyond  any  legal  regulations  there  comes  the 
law  of  kindness,  that  most  effectually  regulates  this 
peculiar  and  intimate  relation.  And  the  law  is  alike 
imperative  for  mistress  and  maid,  for  master  and 
man.  For  the  best  trained  of  domestic  machines  is 
still  a  human  being,  subject  to  like  passions  with 
ourselves  ;  and  the  most  envied  of  employers  is  still 
subject  to  troubles.  If  each  party  would  remember 
the  human  equality  and  the  demands  of  brother- 
liness,  there  would  be  more  happy  employers  and 
fewer  arrogant  employees. 


CHAPTER    X 

OUR   BUSINESS    RELATIONS   WITH   RAILROADS   AND 
HOTELS 

In  a  previous  chapter  we  have  referred  to  the  con- 
tract which  each  passenger  enters  into  with  a  rail- 
road when  he  buys  a  ticket;  but  beyond  the  stipu- 
lation that  the  company  which  issues  the  ticket 
will,  for  a  given  consideration,  convey  the  passen- 
ger to  a  certain  destination,  there  are  several  things 
not  mentioned.  Suits  at  law,  in  various  states  and 
for  various  reasons,  have  defined  quite  clearly  the 
respective  rights  and  duties  of  carrier  and  passen- 
ger. A  railroad  company,  a  trolley  company,  or  a 
company  operating  any  other  means  of  conveyance 
open  to  the  public  and  run  over  public  highways, 
is  termed  "a  common  carrier";  as  such  he  "under- 
takes to  protect  his  passengers  against  the  miscon- 
duct of  his  servants  while  engaged  in  executing  the 
contract  of  carriage,  and  to  make  every  reasonable 
effort  to  protect  his  passengers  from  violence  or 
insult  by  strangers  or  fellow  passengers." 

This  is  a  clear  statement  of  the  case ;  and  one 
can  easily  see  that  a  company  is  responsible  for 
the  acts  of  its  servants;  and  that  a  passenger  is 


RAILROADS  AND   HOTELS  119 

well  within  his  rights  in  resenting  insolence  or 
neglect  on  the  part  of  railroad  officials.  It  is  to 
protect  the  passenger  from  insult  that  drunken 
men  are  ejected  from  trains,  and  that  lunatics  are 
forcibly  restrained.  Let  us  go  back  a  little  and  see 
what  constitutes  a  passenger,  and  who  may  become 
such. 

The  law  states  that  any  one  who  has  bought  a 
railroad  ticket,  or  hailed  a  trolley  car,  is  from  that 
moment  a  passenger,  entitled  to  all  the  protection 
due  to  one;  and  the  company  is  liable  for  any 
damage  he  may  sustain  on  station  platforms  or  in 
waiting-rooms.  In  most  states  the  law  requires  that 
a  railroad  must  receive  as  passengers  all  **  fit  "  per- 
sons who  may  apply  for  tickets ;  and  defines  as 
**  unfit,"  and  therefore  liable  to  be  refused  passage, 
notorious  criminals,  the  drunken  and  disorderly, 
and  those  offensively  sick  with  contagious  diseases. 

Some  people  have  so  little  knowledge  of  the  na- 
ture of  diseases,  or  else  so  little  regard  for  others* 
safety  so  long  as  their  selfish  convenience  is  se- 
cured, that  they  will  take  their  children  on  trains 
and  trolley  cars  when  suffering  from  smallpox  or 
scarlet  fever  or  diphtheria.  Sometimes  the  conduc- 
tor discovers  the  fact,  oftener  he  does  not,  and  so 
the  disease  is  disseminated.  But  if  such  cases  are 
discovered  this  law  empowers  the  railroads  to  re- 
fuse passage,  or  to  eject  such  persons  from  trains. 


120    EVERY-DAY  BUSINESS   FOR  WOMEN 

Some  of  the  Southern  States,  where  the  negro 
population  is  large,  have  what  is  known  as  a  "Jim 
Crow"  law,  which  forbids  whites  and  negroes  to 
ride  in  the  same  car,  or  compartment,  as  the  case 
may  be.  Theoretically  this  law  is  decried  by  many 
who  are  unfamiliar  with  local  conditions ;  but  a 
little  actual  experience  in  a  thickly  settled  South- 
ern community  where  this  law  is  not  on  the  stat- 
ute-books, will  soon  cause  a  change  of  opinion. 
Railroads  sometimes  stretch  the  word  "  unfit "  to 
make  it  cover  persons  who  were  not  clearly  in  view 
when  the  law  was  made,  but  who  are  not  desirable 
to  have  as  passengers. 

A  passenger,  then,  when  insulted  or  annoyed  by 
a  fellow  passenger,  should  summon  the  conductor 
and  state  the  case  to  him,  for  he  is  bound  to  pro- 
tect her  from  annoyance.  If  the  offender  is  a  rail- 
road official,  he  should  be  reported  as  circumstan- 
tially as  possible,  in  writing,  to  the  company ;  one 
should  be  careful  always  to  state  train  and  time  as 
nearly  as  possible,  so  that  the  offender  may  be  iden- 
tified.   This  is  one's  duty  to  the  traveling  public. 

If  one  is  injured  while  traveling  on  a  railroad,  or 
at  the  station  or  waiting-room  of  the  company,  and 
the  injury  can  be  shown  to  be  due  to  the  company's 
negligence,  one  may  sue  for  damages  ;  or  if  death 
ensues,  one's  heirs  and  executors  may  sue  for  the 
loss  of  life.  But  if  a  heavy  parcel  or  bag  should 


RAILROADS  AND   HOTELS  121 

happen  to  fall  from  a  rack  overhead,  and  dislocate 
a  person's  shoulder  by  the  force  of  the  blow,  he 
could  not  sue  the  railroad  company  for  the  damage; 
for  the  courts  hold  that,  since  racks  are  provided, 
it  is  the  duty  of  the  individual  passenger  to  take 
note  of  their  contents,  and  not  to  seat  himself  near 
to  dangerous  packages.  So,  too,  if  one  stands  in  the 
aisle  of  the  car  before  the  train  stops,  and  is  injured 
by  the  sudden  jolt  as  the  train  stops,  the  company 
cannot  be  held  liable,  since  it  expects  passengers 
to  retain  their  seats  until  the  destination  is  reached. 
The  same  is  true  as  to  all  accidents  incurred  by 
persons  who  stand  on  the  platforms  of  moving 
trains  ;  they  are  out  of  place,  so  the  company  is  not 
liable  for  their  misfortunes.  A  common  carrier  is 
bound  to  use  the  best  known  precautions  to  insure 
the  safety  of  his  passengers,  and  he  is  responsible 
for  any  accident  due  to  defective  equipment  of 
trains ;  and  damages  for  such  may  be  recovered  by 
bringing  suit.  How  numerous  these  claims  are  is 
not  generally  known,  for  a  large  number  of  per- 
sonal-damage suits  are  settled  out  of  court  by  com- 
promise. 

A  train  that  is  advertised  as  an  especially  fast 
train,  and  for  which  an  extra  fare  is  therefore 
charged,  must  make  its  schedule  time  within  rea- 
sonable limits,  or  else  refund  the  extra  charge.  For 
most  trains  railroads  now,  by  a  special  clause,  dis- 


122     EVERY-DAY  BUSINESS   FOR  WOMEN 

claim  any  contract  in  the  schedule,  stating  that  the 
schedule  is  approximate  only,  and  is  issued  for  the 
convenience  of  passengers,  but  its  statements  are 
not  guaranteed :  this  releases  them  from  all  liabil- 
ity in  the  matter. 

If  forced  to  stand  in  a  railroad  car  a  passenger 
may  sue  for  breach  of  contract,  and  is  not  obliged 
to  pay  fare  unless  seated ;  and  if  a  seat  cannot  be 
found  in  the  ordinary  coach,  for  which  his  ticket 
calls,  he  may  go  into  the  parlor  car  or  sleeper  for  a 
seat,  without  paying  extra  fare.  It  is,  however,  to 
be  observed  in  this  connection,  that  a  conductor 
would  hardly  allow  this  without  making  a  vigorous 
protest ;  and  as  most  people  dislike  a  scene  in  public, 
it  is  only  the  pugnacious  few  who  insist  upon  their 
rights.  This  is  railroad  law  in  general,  although 
there  may  be  some  states  where  it  does  not  apply. 

But  it  is  not  only  we  who  travel,  but  also  our 
trunks ;  and  sometimes  trunks  are  burned  or 
dumped  into  rivers,  or  otherwise  lost  by  accidents. 
Is  the  company  responsible  for  the  damage.-'  Most 
tickets  now  limit  the  liability  by  contract  to  one 
hundred  dollars*  worth  of  baggage,  not  exceeding 
one  hundred  and  fifty  pounds  in  weight ;  and  the 
company  is  liable  only  for  checked  baggage  :  if  the 
traveler's  suit-case  was  carried  by  him  into  the  car, 
and  later  destroyed  by  accident,  he  could  not  re- 
cover damages.  The  justice  of  this  is  plain ;  for  the 


RAILROADS  AND   HOTELS  123 

company  would  have  no  evidence  that  such  suit 
case  ever  existed,  except  for  the  passenger's  state- 
ment ;  and  this  would  open  a  wide  door  for  fraud 
against  the  railroad. 

The  company  is  further  held  liable  only  for  per- 
sona/h3.gga.ge  ;  and  numerous  lawsuits  have  resulted 
in  this  being  defined  as  consisting  of  "articles  neces- 
sary or  which  minister  to  one's  comfort,  conven- 
ience, or  recreation  while  away  from  home."  Bonds 
carried  in  a  trunk  are  not  classed  as  "  personal,"  and 
therefore  their  value  cannot  be  reclaimed  if  lost. 

The  company  is  not  held  liable  for  damage  to 
baggage  caused  by  the  '*  act  of  God,"  that  is,  by 
lightning,  hailstorms,  or  such  things,  humanly  una- 
voidable; nor  for  loss  or  damage  suffered  at  the 
hands  of  "the  public  enemy"  —  that  is  the  travel- 
er's risk,  knowingly  assumed  by  him  when  he  travels 
in  time  of  war  ;  nor  yet  is  it  liable  if  the  damage  is 
clearly  the  fault  of  the  passenger,  resulting  from 
his  negligence  or  the  fragile  nature  of  his  baggage. 
On  some  roads  the  condition  of  the  baggage  is  noted 
by  punch  on  the  baggage-check  when  it  is  given ; 
this  protects  the  road  against  unjust  claims. 

When  property  is  stolen  from  a  passenger  in  a 
sleeping-car,  the  company  makes  every  reasonable 
effort  to  recover  the  same  ;  and  failing  in  that,  gen- 
erally reimburses  the  passenger,  after  a  careful  ex- 
amination of  the  evidence  of  its  loss  and  value. 


124    EVERY-DAY  BUSINESS   FOR  WOMEN 

After  this  brief  survey  of  the  relations  of  pas- 
senger and  common  carrier,  let  us  turn  our  attention 
to  the  proper  business  way  of  traveling,  since  we 
have  seen  what  a  closely  guarded  business  affair  a 
journey  really  is.  To  have  one's  ticket  easily  acces- 
sible, so  that  it  may  be  promptly  shown  when  called 
for,  seems  almost  an  unnecessary  piece  of  advice. 
But  it  is  not,  nor  are  women  the  only  offenders  in 
this  regard.  If  one's  ticket  entitles  her  to  a  seat,  it 
is  also  true  that  one  ticket  calls  for  only  07ie  seaty 
and  to  monopolize  two  in  a  crowded  car  classes  one 
with  the  grasping,  the  selfish,  and  the  unbusiness- 
like. 

Before  starting  on  a  journey  one's  baggage  should 
be  put  into  good  order,  so  that  it  may  safely  stand 
the  strain  of  travel  and  the  assault  of  the  baggage- 
smashing  expressman,  and  hold  its  contents  so  se- 
curely that  no  thief  may  tamper  with  them.  One 
should  always  make  a  memorandum  of  the  number 
of  the  baggage-check,  so  that  in  case  of  loss  of  the 
check  it  would  be  possible  to  reclaim  baggage  by 
identifying  it.  A  receipt  should  always  be  taken 
from  any  expressman  to  whom  the  check  is  given 
in  order  that  he  may  deliver  the  baggage,  and  the 
receipt  should  state  the  number  of  the  check ;  oth- 
erwise one  has  nothing  to  show  for  the  baggage, 
nor  any  hold  upon  the  expressman. 

This  is  not  a  treatise  upon  etiquette,  but  it  is  not 


RAILROADS  AND   HOTELS  125 

out  of  place  to  mention  that  a  quiet,  self-controlled 
manner  while  traveling  adds  greatly  to  one's  com- 
fort, and  facilitates  business.  One  should  always 
see  that  the  check  given  for  baggage  corresponds 
with  the  desired  destination  named  on  the  ticket, 
for  mistakes  sometimes  happen.  In  short,  be  so 
careful  to  avoid  mistakes,  that  only  unavoidable 
accidents  will  mar  the  serenity  of  your  journeys. 

Hotels.  Somewhere  in  the  course  of  a  journey  one 
is  apt  to  stay  at  a  hotel ;  and  while  one  never  feels 
the  need  or  value  of  laws  regarding  the  rights  and 
duties  of  landlord  and  guest,  respectively,  so  long 
as  things  run  smoothly,  nevertheless  these  exist, 
and  a  knowledge  of  them  beforehand  will  be  of  some 
assistance.  Most  laws  on  this  subject  have  grown 
out  of  actual  cases  which  demonstrated  their  neces- 
sity. In  law  a  hotel  is  an  inn^  and  an  innkeeper  is 
one  who  undertakes  to  provide  for  the  traveling 
public.  As  such  he  is  bound  to  receive  any  guest 
who  can  pay  for  his  entertainment,  and  who  is  2.  fit 
person,  provided  his  house  is  not  full.  So  runs  the 
law ;  now  how  does  it  work  practically } 

In  order  to  ascertain  his  financial  ability,  a  guest 
without  baggage  is  usually  required  to  pay  in  ad- 
vance. If  he  fails  to  pay  his  bill,  but  has  baggage, 
the  landlord  may  seize  his  trunks  and  hold  them 
until  the  bill  is  paid  ;  the  landlord's  bill  constitutes 
a  lien  on  the  goods  of  the  guest. 


126     EVERY-DAY  BUSINESS   FOR  WOMEN 

Hotels  have  several  modes  of  refusing  undesir- 
able guests  :  one  way  is  to  claim  that  the  house  is 
full, —  a  polite  lie  which  saves  the  applicant's  feel- 
ings ;  another  way  is  to  take  refuge  behind  the 
statute  defining  fitness.  This  is  a  broad  term,  and 
the  unfit  include  the  drunken,  the  disorderly  and 
openly  vicious,  those  possessed  of  dogs  which  they 
insist  on  taking  into  the  rooms,  and  people  suffer- 
ing with  infectious  diseases,  or  who  come  from  in- 
fected districts  ;  in  some  cases  very  vulgar  table 
manners  have  been  held  to  disqualify  a  man  as  a 
guest  at  a  hotel.  Under  one  or  the  other  heads  of 
this  statute,  a  good  many  people  can  be  held  to  be 
unfit.  Hotels  make  a  third  distinction  sometimes 
in  regard  to  race,  and  exclude  negroes  and  Chinese ; 
but  generally  these  are  told  that  the  house  is  full, 
for  the  statutes  in  most  Northern  States  do  not 
recognize  race  as  constituting  unfitness  to  be  a 
hotel  guest. 

Rooms  engaged  in  advance  may  be  charged  for, 
although  never  occupied,  since  a  contract  was  thus 
entered  into,  and  the  landlord  could  sue  for  breach 
of  contract. 

If  a  person  falls  ill  at  a  hotel,  the  landlord  is  not 
bound  to  keep  him,  but  if  he  is  turned  out,  the  law 
does  insist  that  it  be  done  in  a  humane  manner.  To 
put  an  ill  man  out  of  the  house  and  leave  him  ex- 
posed on  the  pavement  would  render  the  innkeeper 


RAILROADS  AND   HOTELS  127 

liable  for  any  injuries  resulting  from  the  exposure. 
Foreign  hotels  are  especially  heartless  in  this  re- 
gard, and  the  sick  man  is  charged  for  the  refurnish- 
ing and  decorating  of  the  room,  and  summarily 
bundled  out  of  the  house  and  sent  to  the  hospital. 

An  innkeeper  is  bound  by  his  occupation  to  keep 
the  property  of  his  guests  safely,  and  may  be  sued 
for  its  value  if  it  is  stolen,  or  destroyed  by  a  mob 
or  an  incendiary  fire.  In  some  states  the  landlord 
is  exempted  from  this  responsibility  if  he  provides 
a  safe  for  the  valuables  of  the  guests,  and  notifies 
them  that  such  is  the  case.  Hence  in  many  hotels 
a  notice  is  posted  conspicuously  in  every  guest- 
room reading  after  this  manner :  "  Guests  are 
warned  not  to  keep  valuables  in  their  rooms,  as 
there  is  a  safe  provided  for  them  in  the  office." 

A  landlord  is  exempted  from  responsibility  for 
losses  incurred  by  lightning,  earthquakes,  torna- 
does, unprecedented  floods,  and  sudden  death  due 
to  natural  causes,  since  these  are  humanly  unavoid- 
able, and  are  termed  "acts  of  God."  Under  this 
provision  San  Francisco  landlords  were  not  sued 
for  earthquake  damages ;  Havana  landlords  were 
not  called  upon  to  make  good  the  damage  wrought 
by  the  tornado  ;  nor  those  of  Galveston  for  damages 
by  the  flood ;  nor  those  of  Naples  and  Torre  del 
Greco  for  the  havoc  wrought  by  Vesuvius.  Should 
the  loss  be  caused  by  "the  public  enemy,"  that  is, 


128     EVERY-DAY  BUSINESS   FOR  WOMEN 

by  pirates  or  the  forces  of  a  nation  which  was  at 
war  with  the  country,  the  guest  could  not  recover 
for  the  loss,  nor  could  he  if  the  loss  were  proven  to 
be  due  to  his  own  negligence. 

The  law  makes  a  distinction  between  guests  and 
boarders,  for  the  landlord's  benefit ;  and  the  re- 
sponsibilities mentioned  above  hold  for  guests,  but 
not  for  boarders.  The  two  classes  are  thus  defined. 
"  If  a  person's  stay  is  indefinite,  and  may  be  ter- 
minated at  any  time  ;  if  he  comes  to  the  inn  as  a  tem- 
porary sojourner  or  traveler  or  wayfarer,  and  there 
receives  lodging  and  entertainment,  he  is  a  guest. 
If,  on  the  other  hand,  he  takes  up  his  residence  at 
the  inn  for  a  fixed  period  and  at  agreed  rates,  he  is 
a  boarder."  *  He  is  not  liable  for  the  property  of 
his  boarders  unless  he  has  been  negligent.  The  law 
takes  no  cognizance  of  courtesy,  attention,  service, 
or  the  character  of  the  lodgings  furnished,  or  the 
food  served;  as  these  things  make  the  hotel's  re- 
putation. A  notable  exception  to  this  statement, 
however,  is  furnished  by  a  law  recently  passed  by 
the  Legislature  of  Arkansas  which  requires  all 
sheets  to  be  six  feet  long,  and  forbids  the  use  of 
nicked  dishes  at  the  table.  Such,  at  least,  is  the 
newspaper  report. 

To  sum  up  the  matter  briefly,  then,  we  must  re- 
member that  the  landlord  has  large  liberty  in  the 

1  Francis  M.  'StMx^v^s  Essentials  of  Business  Law. 


RAILROADS  AND   HOTELS  129 

choice  of  guests,  but  must  treat  them  humanely  in 
illness,  and  must  protect  their  property.  The  guest 
must  so  comport  himself  as  to  be  classed  "fit,"  and 
if  he  wishes  the  full  protection  of  the  law,  should 
make  his  stay  a  temporary  one :  he  should  also  re- 
member to  pay  for  rooms  from  the  time  that  they 
are  engaged  until  he  vacates  them. 

With  these  mutual  obligations  well  in  mind,  no 
traveler  need  be  imposed  upon ;  for  he  will  take  care 
to  keep  within  the  letter  and  the  spirit  of  the  law. 


CHAPTER  XI 

SIMPLE   BOOKKEEPING 

To  hear  some  people  talk  of  bookkeeping  one 
might  imagine  it  to  be  a  black  art,  whose  myste- 
ries were  intelligible  only  to  the  deeply  initiated ; 
whereas  it  is  a  most  simple  and  logical  system  of 
tracing  the  source  and  amount  of  the  money  which 
one  has  received,  and  the  destination  and  quantity  of 
that  expended,  in  order  that  one  may  know  the  pro- 
portion between  income  and  outgo.  For  this  reason 
a  knowledge  of  the  simple  forms  of  bookkeeping  is 
an  indispensable  part  of  the  complete  education  of 
women  as  well  as  men.  Many  fathers  would  gladly 
have  their  daughters  as  well  as  their  sons  learn  this 
art,  but  they  lack  the  time  or  patience  to  teach 
them ;  and  the  result  of  such  neglect  is  often  piti- 
able. The  daughter  from  a  sheltered  home  where 
fe^apa)  looks  after  the  accounts,  and  money  is  plen- 
tiful, marries  a  man  with  less  than  her  father's 
wealth,  and  cannot  control  her  expenditures  be- 
cause she  does  not  keep  accounts ;  and  domestic 
unhappiness  often  results.  Or  she  may  be  left  a 
widow  and  forced  to  do  business  without  knowing 
how,  —  a  most  expensive  way  to  learn.     English 


SIMPLE   BOOKKEEPING  131 

women  of  position  are  taught  to  keep  accounts  as  a 
necessity  of  the  situation  ;  and  some  day,  when  we 
are  wiser  in  the  ways  of  the  world,  we  shall  come 
to  require  it  of  our  daughters. 

In  the  first  place,  when  we  begin  to  keep  ac- 
counts we  find  how  dependent  we  are  upon  others, 
for  we  make  the  astonishing  discovery  that  every 
item  of  expense  has  two  sides,  we  stand  always  in 
the  joint  position  of  debtor  and  creditor ;  that  is  to 
say,  we  owe  half  the  world,  and  the  other  half  owes 
us ;  for  the  money  we  receive,  some  one  else  pays 
out,  and  the  money  we  pay,  some  one  else  receives. 
So  we  have  two  sides  to  our  account,  a  debit  and 
a  credit  side;  the  debit  is  the  left  side,  and  in 
bank-books  the  letters  Dr.  stand  at  the  top  of  the 
page  on  that  side,  and  the  letters  Cr.  on  the  right- 
hand  side,  although  in  ordinary  accounts  these  are 
understood. 

Double-entry  bookkeeping  is  so  called  because 
each  item  is  entered  under  its  debit  and  credit 
side  :  in  the  simple  form  of  single-entry  bookkeep- 
ing we  enter  items  only  under  the  heading  which 
indicates  ourjelation  to  them. 

The  phrase  runs  that  we  are  debtor  to  our  cash 
account  for  all  money  we  receive,  —  technically 
speaking  we  are  debited^  —  and  that  we  stand  ac- 
credited with  all  that  we  have  paid  out  or  expended ; 
the  credit  is  ours  because  we  have  accounted  for  all 


132     EVERY-DAY  BUSINESS   FOR  WOMEN 

the  money  that  we  have  received.  Another  form 
of  the  rule  is  to  "debit  what  costs  value,  and 
credit  what  produces  value."  Let  us  make  a  speci- 
men account  for  a  girl  on  an  allowance  of  fifty  dol- 
lars a  month. 

January,  1908 


I 

To  allowance 

50 

00 

3 

Veil 

I 

50 

Gift  from  Uncle 

5 

GO 

Gloves 

2 

50 

17 

Jane  returned 

5 

GO 

4 

Candy 

50 

5 

Matinee 

2 

00 

8 

Birthday  present 

3 

00 

10 

Slippers 

7 

00 

II 

Postage 

I 

00 

12 

Luncheon 
Matinee 

5 
2 

00 

so 

13 

Contribution 

50' 

16 

Lent  Jane 

5 

00 

2G 

Stationery 

5 

00 

25 

Charity 
Balance 

2 
22 

00 
5^ 

60 

00 

To 

00 

The  result  of  this  month  shows  that  the  girl 
actually  handled  sixty  dollars,  although  she  only 
had  fifty-five ;  this  is  due  to  the  fact  that  she  made 
a  loan  which  was  repaid  during  the  month,  and  the 
amount  had  to  be  entered  when  it  was  paid  out, 
and  also  when  it  was  returned. 

On  the  borrower's  books  the  entries  would  have 
been  in  reverse  order ;  that  is,  she  would  have  deb- 
ited cash  five  dollars  when  she  received  the  loan,  and 


SIMPLE   BOOKKEEPING  133 

credited  it  when  she  paid  it.  By  looking  over  such 
an  account  one  discovers  how  much  money  can  be 
spent  without  tangible  returns  ;  and  without  it,  one 
might  be  tempted  to  say,  "Where  has  my  money 
gone  to  ?  I  've  almost  nothing  to  show  for  it."  In 
this  way  an  account  tends  to  check  extravagance. 

When  we  have  reached  the  end  of  a  month  we 
"  balance"  our  book.  This  is  done  by  adding  all  we 
have  received,  in  its  column;  and  all  we  have  spent, 
in  its  column,  and  to  this  latter  we  add  what  we 
have  on  hand  in  cash  or  checks  or  in  the  bank ; 
and  if  the  sum  equals  what  we  have  received,  we 
say  that  the  account  "  balances."  The  figure  of 
speech  is  taken  from  the  old  scales  or  balances, 
where  the  weights  went  into  one  pan,  and  the  sugar 
or  flour  into  the  other,  until  the  weight  on  one  side 
equaled  the  weight  on  the  other. 

This  balance  we  carry  on  to  the  next  page, 
transferring  it  to  the  debit  side ;  this  is  done  be- 
cause we  have  accounted  for  it  on  the  credit  side, 
and  so  it  is  as  though  we  had  received  it  over  again 
for  our  account.  This  is  not  at  all  a  complicated 
system,  and  any  girl  with  a  modicum  of  brains  can 
grasp  it ;  and  a  rigid  enforcement  of  its  great  un- 
derlying principle  of  debit  and  credit  will  untangle 
most  accounts. 

At  the  close  of  the  month  a  good  housekeeper 
will  carefully  classify  the   expenditures   for  that 


134    EVERY-DAY  BUSINESS   FOR  WOMEN 

period  :  this  involves  a  distribution  under  appropri- 
ate headings  of  the  items  of  cash  expenditure  and 
of  bills  paid  and  incurred  during  the  month.  Usu- 
ally a  few  headings  will  suffice,  as :  i.  Rent  or  Taxes. 
2.  Maintenance  of  building  and  equipment ;  this  in- 
cludes repairs  and  new  furnishings  added.  3.  Food 
and  ice.  4.  Fuel,  which  should  include  the  cost  of 
removal  of  ashes,  if  this  is  an  item  of  expense.  5. 
Clothing.  6.  Education,  which  should  include  the 
outlay  for  books  and  periodicals.  7.  Medicines  and 
doctors  and  dentists.  8.  Wages.  9.  Stationery  and 
postage.  10.  Travel,  by  trolley  or  train.  11.  Amuse- 
ments. 12.  Pew  rent.  13.  Benevolence.  Other  head- 
ings may  be  added  as  individual  need  requires.  By 
this  system  it  is  easy  to  see  whether  the  expendi- 
ture in  any  department  is  disproportionate  or  ex- 
travagant. 

Really  to  check  expenses,  one  should  calmly  face 
the  problem  of  income  and  these  demands  upon  it, 
and  determine  in  advance  just  what  percentage  of 
the  monthly  income  shall  go  for  each  class  of  ex- 
penditures ;  it  will  take  patience,  self-control,  and 
practice  to  perfect  the  system  so  that  all  one's 
needs  shall  be  met  without  exceeding  one's  income. 

There  are  some  other  points  to  be  mentioned, 
however :  in  order  that  an  account  may  be  of  any 
value,  it  must  be  complete  and  accurate  in  its  de- 
tail.   It  will  not  do  to  trust  to  memory  for  items  of 


SIMPLE  BOOKKEEPING  135 

expenditure  and  receipt,  — they  should  be  entered 
in  the  account-book  as  soon  as  made.  A  book  which 
has  been  kept  with  such  painstaking  accuracy  might 
be  produced  in  court  as  evidence  of  the  payment  of 
a  bill  :  but  if  on  a  single  occasion  the  owner  of  the 
book  had  to  admit  that  she  had  entered  expendi- 
tures a  day  or  two  after  their  occurrence,  and  there 
were  no  vouchers  for  the  statements,  the  account 
would  lose  weight  as  evidence. 

To  insure  accuracy  and  make  accounts  really 
valuable  as  evidence  of  expenditure,  vouchers  should 
accompany  them.  A  voucher  is  a  document  which 
vouches  for,  or  bears  witness  to,  the  truth  of  the 
entry  in  the  cash-book.  Thus,  if  the  entry  reads, 
"Paid  Jones's  bill,  $13.50,"  then  the  receipted  bill 
becomes  the  voucher  for  the  entry  ;  or,  if  Jones  has 
failed  to  receipt  the  bill,  but  has  indorsed  the  check 
with  which  it  was  paid,  thecheckwill  be  a  voucher. 
In  bank  accounts  the  checks  which  the  bank  has 
paid  out  on  an  account  are  returned  with  the  bal- 
anced book  as  vouchers  for  the  correctness  of  their 
statement  of  the  balance  due.  Of  course  the  date 
and  amount  of  the  voucher  should  agree  with  the 
entry  which  it  is  to  prove. 

Some  other  points  about  bookkeeping  are  sub- 
sidiary but  important.  Accuracy  in  figures  is  vital, 
for  accounts  cannot  be  balanced  without  this  im- 
portant art;  and  oftentimes  the  reason  why  they 


136     EVERY-DAY  BUSINESS   FOR  WOMEN 

will  not  balance  is  some  trifling  error  in  multipli- 
cation or  addition.  Regular  bookkeepers  become  so 
expert  that  they  can  add  four  columns  of  figures  at 
once ;  and  constant  practice  will  render  it  very  easy' 
to  acquire  the  art  of  double-column  addition  at 
least ;  one  becomes  used  to  combinations  of  fig- 
ures, and  7  and  3,  5  and  5,  6  and  4,  8  and  2,  9  and 
I,  mean  10,  without  any  appreciable  mental  effort. 
It  is  therefore  a  wise  rule  for  any  one  who  plans  to 
keep  her  own  accounts  to  practice  addition  daily; 
it  will  save  time  and  headache  when  the  art  is  once 
acquired. 

Sometimes  mistakes  occur  because  the  figures 
are  misread,  and  this  liability  to  error  makes  figure- 
writing  of  much  importance.  Then,  too,  why  should 
not  the  love  of  the  beautiful  be  turned  to  practical 
account.-*  and  if  one  makes  figures,  why  should  they 
not  have  a  beautiful  and  legible  form  ?  The  ease 
with  which  the  page  is  read,  and  its  general  appear- 
ance are  much  enhanced  if  the  writing  is  neat  and 
clear  and  the  slant  of  the  figures  is  uniform. 

Of  course  somebody  asks,  **  What  is  the  use  of 
so  much  trouble  about  trifling  details  if  nobody  ever 
sees  the  book  except  myself.?"  The  answer  is 
simply  this.  There  is  an  ideal  in  bookkeeping  as 
in  everything  else.  When  this  ideal  has  been  at- 
tained by  many,  we  call  it  a  standard  of  excellence, 
and  thereafter  all  work  of  that  sort  is  graded  by 


SIMPLE   BOOKKEEPING  137 

that  established  standard,  that  incorporated  ideal ; 
and  to  do  work  of  any  sort,  even  the  keeping  of 
personal  accounts,  without  regard  to  **  the  more  ex- 
cellent way,"  is  a  species  of  moral  laziness  which  in 
time  weakens  the  fibres  of  self-respect.  Moreover, 
the  habits  of  painstaking  accuracy,  neatness,  and 
care,  when  once  acquired,  are  useful  in  many  other 
places,  and  make  one  a  more  valuable  member  of 
society. 

There  is  another  form  of  keeping  accounts  on  a 
broad  scale,  that  is  used  when  one  takes  account 
of  all  one's  possessions,  and  balances  it  with  all 
one's  debts.  Those  possessions,  such  as  furniture, 
draperies,  art  treasures,  books,  laces,  jewels,  stocks, 
bonds,  and  real  estate,  and  anything  that  could 
be  sold  for  the  payment  of  debts,  are  called  as- 
sets;  all  debts  which  others  owe  us  are  also  classed 
among  our  assets.  All  debts  which  we  owe,  all  de- 
mands which  may  be  made  against  us,  are  termed 
our  liabilities  ;  and  it  is  not  merely  the  money  that 
we  have  in  hand  which  determines  our  "present 
worth,"  as  the  phrase  runs,  but  the  amount  by 
which  the  assets  exceed  the  liabilities ;  or  in  other 
words,  we  are  worth  the  difference  between  what 
we  owe  and  what  we  possess.  At  least  once  a  year, 
every  well-ordered  household  ought  to  make  up 
such  an  account. 

It  is  sometimes  difficult  to  determine  these  as- 


138     EVERY-DAY  BUSINESS   FOR  WOMEN 

sets  ;  and  to  get  them  as  exactly  as  possible  a  list 
should  be  made  of  everything  possessed  and  a  value 
placed  upon  each  article.  In  determining  such  value 
one  must  consider  two  things,  —  not  what  the  article 
cost  but  what  it  would  cost  to  replace  it  now ;  and 
what  it  would  probably  sell  for  in  its  present  con- 
dition. It  is  well  to  put  the  lowest  possible  esti- 
mate on  things,  for  a  little  experience  of  the  small 
prices  brought  by  valuable  articles  at  sales  shows 
how  much  of  value  resides  in  the  fact  of  the  new- 
ness or  the  associations  attached  to  an  article.  This 
is  especially  true  of  furniture  and  books  in  gene- 
ral ;  rare  editions  and  choice  pictures  have  a  more 
permanent  value.  Such  a  list  of  one's  possessions 
is  called  an  inventory,  and  is  classed  among  the 
assets. 

Inventories  are  also  taken  when  one  is  claiming 
damages  for  losses  by  fire  from  insurance  com- 
panies ;  they  are  taken  before  leasing  a  furnished 
house  or  apartment,  and  in  cases  of  bankruptcy,  and 
in  the  settling  of  estates.  They  are  therefore  valu- 
able lists,  and  require  much  care  and  judgment  to 
be  accurate.  In  important  cases  officials  called  ap- 
praisers are  appointed  to  this  task.  Many  men  have 
gone  carelessly  on  from  year  to  year,  thinking  them- 
selves prosperous  because  in  their  inventories  they 
attached  inflated  values  to  their  property  ;  but  when 
their  estates  were  settled  the  bubble  values  were 


SIMPLE   BOOKKEEPING  139 

pricked,  and  the  shrunken  assets  left  their  estates 
almost  insolvent. 

It  would  be  a  most  efficient  check  against  ex- 
travagance if  one  asked  one's  self  before  buying 
property  or  curios,  "  For  how  much  would  this  be 
listed  in  my  inventory  ?  "  This  suggestion  is  made 
on  the  supposition  that  one  wants  to  make  a  wise 
use  of  money ;  for  it  is  to  accomplish  this  end  that 
we  keep  accounts,  and  make  a  yearly  statement  of 
property.  For  money  is  a  power,  and  men  are  wise 
or  foolish  according  as  they  use  it ;  this  is  the  ordi- 
nary business  view,  the  motive  for  keeping  account 
of  it.  There  is  a  higher  ethical  side  even  to  book- 
keeping ;  for  while  money  is  a  power,  it  is  also  a 
trust,  for  whose  right  management  we  are  respon- 
sible. If  the  world  owes  us  something,  we  in  turn  are 
debtors  to  the  world  for  the  social  organization  that 
protects  property,  that  makes  it  possible  to  acquire 
and  enjoy  wealth.  And  it  is  in  order  that  we  may 
faithfully  discharge  this  social  obligation,  and  more 
efficiently  fulfill  our  trust,  that  we  should  be  willing 
to  take  the  time  and  pains  to  look  after  the  little 
details  called  cents,  and  gather  them  into  an  orderly 
account. 


CHAPTER   XII 

ON   SENDING   THINGS 

Years  ago  the  business  of  sending  things  had  not 
assumed  its  present  huge  proportions ;  it  was  chiefly 
men  of  business  who  had  things  sent  from  one 
country  to  another,  for  routes  were  not  in  existence 
for  sending  Christmas  gifts  over  the  civilized  world  ; 
and  although  wealthy  individuals  indulged  in  the 
luxury  of  privately  imported  goods,  and  exchanged 
gifts  with  friends  and  kindred  across  the  sea,  for  the 
poor,  distance  made  a  great  break  in  friendly  and 
family  intercourse;  for,  as  even  letters  were  ex- 
pensive things  to  send,  they  lost  track  of  each  other 
upon  separation.  But  with  the  growth  of  commerce, 
ways  of  forwarding  goods  more  easily  and  quickly 
were  devised ;  steamers  and  railway  trains  super- 
seded the  old  carrier's  carts  of  the  earlier  days,  and 
express  companies  sprang  up  which  guaranteed  a 
safe  and  prompt  delivery  of  goods  intrusted  to  them. 
The  first  express  company  in  this  country  was 
started  in  1839,  and  limited  its  operations  to  the 
territory  between  New  York  and  Boston.  A  little 
later  the  government  mail  service  became  better 
organized  and  the  postal  rates  were  lowered,  making 


ON   SENDING   THINGS  141 

communication  by  letter  within  the  reach  of  all. 
Still  more  recently  our  government  adopted  the 
theory  that  a  postal  service  stands  upon  the  same 
footing  as  the  educational  departments  and  cannot 
be  expected  to  pay  the  cost  of  its  own  maintenance. 
In  consequence  of  this  view  facilities  were  increas--  ^ 
ingly  afforded  for  the  transmission  of  small  parcels 
as  well  as  letters  to  all  parts  of  the  country. 

Within  the  last  few  decades,  that  is,  in  1874,  a 
Universal  Postal  Union  has  been  formed,  which 
represents  the  governments  of  over  one  billion 
people ;  so  that  it  is  now  possible  to  send  letters 
and  even  small  packages  over  the  world  by  mail. 
The  representatives  of  these  governments,  which 
include  the  United  States  and  Mexico,  and  most 
of  the  Central  and  South  American  states,  all  the 
European  states  and  their  dependencies,  as  well 
as  Egypt,  Persia,  Korea,  Japan,  and  China,  and 
some  of  the  Sea  Islands,  meet  every  five  years  to 
arrange  the  rates  and  rules  which  shall  govern  the 
transmission  of  mail-matter  between  the  countries 
of  the  Union. 

Mail,  freight,  and  express,  —  these,  then,  are  the 
three  methods  by  which  things  may  be  sent.  Let 
us  examine  them  separately. 

In  this  country  such  packages  of  merchandise 
may  be  sent  by  mail  as  do  not  exceed  four  pounds 
in  weight ;  certain  classes  of  objects  are,  however, 


142     EVERY-DAY  BUSINESS   FOR  WOMEN 

excluded.  Most  articles  that  one  desires  to  send 
are  classed  as  fourth  class  or  merchandise  (mdse.), 
for  which  the  rate  is  one  cent  per  ounce  or  frac- 
tion thereof,  to  be  prepaid  by  stamps  securely- 
affixed.  Packages  must  be  legibly  addressed,  se- 
curely wrapped,  and  unsealed,  so  that  they  may  be 
easily  inspected.  The  law  allows  the  transmission  of 
such  articles  as  are  not  in  "  their  form  or  nature 
liable  to  destroy,  deface,  or  otherwise  damage  the 
contents  of  the  mail-bag,  or  harm  the  person  of 
any  one  engaged  in  the  postal  service."  ^  But  it 
classes  as  unmailable  the  following  articles  :  — 

All  matter  harmful  in  its  nature,  as  poisons,  explosive 
or  inflammable  articles,  live  or  dead  (but  not  stuffed) 
animals,  —  except  bees  \  reptiles  ;  fruits  or  vegetables 
liable  to  decomposition  ;  guano,  or  any  article  exhaling 
a  bad  odor ;  vinous,  spirituous,  or  malt  liquors ;  and 
liquids  liable  to  explosion,  spontaneous  combustion,  or 
ignition  by  shock  or  jar,  such  as  kerosene  oil,  naphtha, 
benzine,  etc.^ 

There  are  some  exceptions  to  this  rule,  for  which 
one  should  consult  the  pamphlet  of  public  inform- 
ation furnished  gratuitously  by  the  Post-Office 
Department,  and  to  be  obtained  from  any  post- 
master. 

Liquids  may  be  sent  if  packed  in  the  druggist's 
cases  approved  by  the  government :  these  are  cork- 
1  United  States  Postal  Regulations. 


ON   SENDING  THINGS  143 

lined  wooden  boxes,  and  may  be  obtained  from  any 
druggist.  Packages  for  any  objects  should  always 
be  "  strong  enough  to  support  the  weight  of  the 
mails  piled  in  bags  and  to  resist  rough  handling." 
Glass  must  be  so  carefully  packed  that,  if  it  should 
break,  the  sharp  edges  would  not  injure  or  muti- 
late the  contents  of  the  mail-sack;  sharp-pointed 
instruments  must  have  their  points  so  securely 
"  capped  or  cased  that  they  may  not  by  any  means 
be  liable  to  cut  through  their  enclosure." 

The  vicissitudes  to  which  mail-sacks  are  exposed 
are  many :  they  are  tossed  on  wagons,  or  from 
wagons  to  boats  with  the  chance  of  a  salt-bath  in 
transit ;  or  thrown  from  express  trains  to  the  hooks 
on  the  posts  by  the  wayside ;  and  finally  dumped 
on  the  floors  of  the  great  city  post-offices  in  huge 
heaps.  That  anything  breakable  survives  such 
usage  is  remarkable  ;  and  to  insure  the  arrival  of  a 
package  in  good  condition  all  these  contingencies 
should  be  kept  in  mind  when  it  is  packed.  For  all 
articles  sent  in  ordinary  mail  are  sent  at  the  send- 
er's risk  as  to  their  arrival  or  condition.  Of  course 
if  a  package  goes  astray  the  post-office  officials 
make  some  effort  to  find  it,  but  this  is  rarely  suc- 
cessful. To  insure  the  safe  delivery  of  articles, 
packages  containing  them  should  be  registered  :  a 
registered  package  can  be  traced,  for  every  em- 
ployee who  handles  it  is  bonded  and  must  receipt 


144     EVERY-DAY  BUSINESS   FOR  WOMEN 

for  it,  and  the  government  is  liable  for  damages 
up  to  the  amount  of  twenty-five  dollars. 

In  registering  a  package  the  name  and  address 
of  the  sender  must  be  plainly  written  on  the  pack- 
age ;  and  in  receipting  for  such  a  package  the  sig- 
nature is  required  of  the  person  actually  receiving 
it ;  provided  that  such  person,  if  not  the  one  ad- 
dressed, has  been  duly  authorized  by  the  addres- 
see to  receipt  for  registered  mail  for  her ;  and  this 
authorization  must  be  on  file  at  the  post-office  to 
free  the  postmaster  from  responsibility.  A  case 
came  under  my  own  observation  that  emphasized 
this  point.  A  lady  traveling  in  Europe  bought  a  lot 
of  French  novels,  and,  to  avoid  carrying  them  about, 
sent  them  to  her  home  in  this  country  by  registered 
mail,  addressing  the  package  to  herself.  The  result 
was  that  the  postmaster  refused  to  deliver  it  to  her 
friends  at  the  house  until  the  proper  designation 
of  some  one  as  agent  had  been  received.  The  post- 
master tries  thus  to  guard  against  fraud,  for  the 
receipt  signed  by  the  addressee  or  her  authorized 
agent  is,  under  the  law,  prima  facie  evidence  of 
delivery,  and  absolves  the  postmaster  from  any 
further  responsibility  in  the  case.  In  consequence 
of  the  greater  care  exercised  in  its  handling,  regis- 
tered mail  travels  more  slowly  than  the  regular 
mail.  The  same  regulations  apply  to  registered  let- 
ters ;  but  as  first-class  mail  travels  more  rapidly 


ON   SENDING   THINGS  145 

than  second  or  third,  people  sometimes  put  letter 
postage  on  a  package  to  insure  its  prompt  delivery 
and  to  admit  of  its  being  sealed. 

Matter  sent  in  the  merchandise  class  must  not 
be  sealed  and  must  not  contain  writing ;  but  a  sin- 
gle card,  bearing  the  name  of  the  sender  and  such 
inscriptions  as  "  Merry  Christmas,"  "  Happy  New 
Year,"  "With  best  wishes,"  or  something  of  that 
sort,  is  allowed.  If  either  of  these  injunctions  is 
disregarded,  the  package  is  classed  with  letters  and 
pays  letter  postage. 

The  parcels-post  system  of  Europe  is  far  in  ad- 
vance of  ours,  for  there  a  package  of  forty  pounds 
weight  may  be  sent  by  post.  Any  suggestions  look- 
ing to  the  establishment  of  such  a  system  in  this 
country  have  always  been  fought  in  Congress  by 
the  express  companies,  for  it  would  prove  a  for- 
midable competitor  to  them,  and  would  lead  to  a 
great  reduction  of  rates. 

Uncle  Sam's  postal  domain  includes  the  United 
States,  Porto  Rico,  Guam,  the  Hawaiian  Islands 
and  the  Philippines,  Tutuila  and  the  "Canal  Zone  " 
at  Panama,  and  the  United  States  postal  agency  at 
Shanghai,  China;  the  domestic  rates  for  postage, 
two  cents  per  ounce  for  letters  and  one  cent  per 
ounce  for  merchandise,  apply  also  to  the  Dominion 
of  Canada,  the  Republic  of  Panama,  Newfoundland, 
Cuba,  and  Mexico ;  and  quite  recently  the  rate  of 


146     EVERY-DAY  BUSINESS   FOR  WOMEN 

two  cents  per  ounce  for  letters  has  become  effective 
between  Great  Britain  and  the  United  States,  and 
also  between  Germany  and  the  United  States. 

Small  packages,  whose  weight  does  not  exceed 
twelve  ounces,  may  be  sent  to  countries  in  the 
Postal  Union  if  they  are  "  samples  without  value," 
at  the  rate  of  two  cents  per  ounce  for  the  first  four 
ounces  or  less,  and  one  cent  for  each  additional  two 
ounces  or  fraction.  This  regulation  and  rate  ex- 
cludes articles  intended  for  gifts,  —  they  should 
properly  be  sent  by  parcels-post,  unless  they  are 
printed  matter,  for  which  the  rate  is  two  ounces 
for  one  cent. 

Packages  sent  abroad  and  intended  as  gifts  or 
for  sale  should  be  labeled  "  Parcels-Post "  in  the 
upper  left-hand  corner,  and  should  be  mailed  at 
the  post-office,  after  inspection  by  an  official  there; 
the  postmaster  will  furnish  a  customs  declaration, 
which  the  sender  must  fill  out,  and  affix  to  the  cover 
of  the  package  in  such  a  manner  that  it  does  not 
close  the  package  and  prevent  it  from  being  easily 
opened.  If  a  letter  is  discovered  in  a  package  which 
has  been  sent  by  parcels-post,  the  whole  parcel  will 
be  rejected.  The  rate  for  this  service  is  twelve  cents 
for  a  pound  or  fraction  of  a  pound,  except  to  Chile 
or  Bolivia,  where  the  rate  is  twenty  cents  a  pound. 
Packages  must  not  weigh  more  than  eleven  pounds 
usually;  but  if  addressed  to  Germany  or  Hong- 


ON   SENDING  THINGS  147 

kong,  China,  they  cannot  exceed  four  pounds  six 
ounces  in  weight. 

There  are  also  limitations  of  size  for  most  of  the 
countries  in  the  Postal  Union  :  the  packages  must 
not  measure  more  than  three  feet  six  inches  in 
length,  and  six  feet  in  length  and  girth  combined. 
Packages  sent  to  Mexico,  Costa  Rica,  and  Colom- 
bia may  not  measure  over  two  feet  in  length. 

The  countries  to  which  articles  may  be  sent  in 
unsealed  packages  by  parcels-post  are  the  follow- 
ing:— 


Australia. 

Bahamas. 

Barbados. 

Belgium. 

Bermuda. 

Bolivia. 

British  Guiana. 

Chile. 

Colombia. 

Costa  Rica. 

Danish  West  Indies. 

Denmark. 

Ecuador. 

Germany. 

Great  Britain. 

Guatemala. 

Honduras  (British). 


Honduras  (Republic  of). 

Hongkong. 

Jamaica. 

Japan. 

Leeward  Islands* 

Mexico. 

Netherlands. 

New  Zealand, 

Newfoundland. 

Nicaragua. 

Norway. 

Peru. 

Sweden. 

Salvador. 

Trinidad,  including  Tobago. 

Venezuela. 

Windward  Islands. 


148     EVERY-DAY  BUSINESS   FOR  WOMEN 

Books  are  sent  in  the  United  States  at  the  rate 
of  two  ounces  for  one  cent,  and  abroad  at  the  same 
rate ;  but  one  must  not  send  in  foreign  mails  books 
or  publications  which  violate  the  copyright  law  of 
the  country  to  which  they  are  sent.  For  example, 
the  Tauchnitz  edition  of  English  and  American 
books,  which  furnishes  so  much  of  the  reading-mat- 
ter of  the  traveling  English-speaking  person,  must 
not  be  sent  by  mail  to  the  country  where  the  books 
were  originally  printed,  for  they  would  be  confis- 
cated as  pirated  editions  which  infringe  the  copy- 
right law. 

The  establishment  of  rural  free  delivery  routes 
in  this  country  means  a  great  gain,  not  only  to  those 
living  on  the  routes,  but  to  their  friends  who  send 
packages  or  letters  to  them.  The  mail  travels  safely 
in  United  States  mail-carts  right  to  the  farmer's 
door ;  and  this  is  more  than  can  be  said  often  for 
its  conveyance  in  a  farmer's  wagon  over  three  or 
four  miles  of  rough  country  roads.  The  traveling 
postman  also  sells  stamps  and  registers  letters. 

Packages  which  are  not  delivered  because  the 
post-office  cannot  find  the  person  to  whom  they  are 
addressed,  are  held  for  two  weeks  at  the  office  and 
a  notice  sent  to  the  sender,  if  her  address  has  been 
given  on  the  parcel.  At  the  end  of  that  time,  unless 
the  original  sender  forwards  stamps  for  the  return 
of  the  package  to  herself,  it  is  sent  to  the  Dead- 


ON   SENDING  THINGS  149 

Letter  Office  at  Washington.  There  such  packages 
are  opened,  and  perishable  or  valueless  articles  are 
destroyed.  The  rest  are  done  up  in  plain  pack- 
ages which  do  not  indicate  their  contents,  and  at 
the  end  of  the  year  are  sold  at  auction  under  the 
government's  auspices.  The  bidding  is  blind,  and 
sometimes  valuables  are  obtained  for  a  song,  and 
sometimes  the  case  is  reversed ;  but  the  govern- 
ment's shelves  are  cleared  by  the  process,  and  a 
small  sum  obtained  which  pays  the  expense  of  stor- 
age on  the  articles.  Any  one  who  has  ever  attended 
one  of  these  sales  remembers  thereafter  to  put  her 
name  and  address  plainly  on  any  packages  sent. 

So  much  for  mail  packages;  let  us  now  turn  to 
the  express  companies,  and  see  what  are  the  facili- 
ties offered  and  the  responsibilities  incurred  in 
sending  goods  by  them,  and  what  are  their  liabili- 
ties in  the  transaction. 

Express  companies  are  private  corporations,  and 
consequently  the  worth  of  their  guarantee  for  the 
safe  delivery  of  goods  intrusted  to  them  depends 
entirely  upon  their  financial  standing.  It  is  a  crime 
against  the  government  to  attack  a  United  States 
mail-car ;  but  since  it  is  only  an  ordinary  crime  to 
attack  an  express  company's  car,  such  a  car,  when 
traveling  through  lonely  and  dangerous  districts, 
must  be  protected  by  armed  guards.  A  package 
sent  by  express  must   be  securely  wrapped  and 


150     EVERY-DAY  BUSINESS   FOR  WOMEN 

sealed,  and  plainly  addressed ;  if  this  is  not  done 
the  company  will  label  it  "  received  in  poor  condi 
tion,"  and  so  escape  responsibility  for  its  loss. 

In  sending  an  express  package  the  value  shouli 
always  be  given  ;  otherwise  in  case  of  loss  no 
more  than  fifty  dollars  can  be  obtained  as  damages 
Agents  are  careful  to  stamp  receipts  in  such  cases 
"  Value  asked  and  not  given,"  and  this  stamp  re 
leases  the  company  from  larger  claims  for  the  los 
of  valuable  packages.  Upon  receiving  a  package 
the  company's  agent  always  gives  a  receipt  for  it 
which  recites  the  place  and  date  of  its  receipt,  fron 
whom  sent  and  to  whom  sent,  and  the  value,  an( 
whether  the  charges  have  been  prepaid  or  not 
This  receipt  should  be  carefully  kept  until  th( 
goods  have  been  received  by  the  addressee,  for  i 
is  a  document  upon  which  a  claim  for  damages  ma; 
be  based  if  the  package  is  lost.  It  should  also  b( 
carefully  read,  for  it  is  a  contract  between  th( 
sender  and  the  company,  and  with  great  particular 
ity  states  exactly  what  the  company  undertakes  t( 
do  with  the  package,  and  where  its  liability  ceases 
It  claims  exemption  from  loss  incurred  at  sea,  b] 
fire,  by  "  the  act  of  God,"  by  mobs,  riots,  pirates,  o 
war.  It  is  not  liable  for  damage  due  to  detentioi 
of  trains  or  boats ;  nor  for  the  negligence  of  j 
railroad  or  steamship  company  at  whose  whar 
baggage  is  delivered ;  and  the  contract  ends  thus 


ON   SENDING  THINGS  151 

"The  party  accepting  this  receipt  hereby  agrees  to 
the  conditions  herein  contained." 

In  addressing  a  package  some  care  should  be 
exercised.  Suppose  one  is  visiting  a  friend :  her 
jCtters  are  addressed  in  care  of  the  friend ;  shall 
an  express  package  be  so  addressed  ?  That  depends 
upon  many  things.  If  it  is  so  addressed,  the  one  in 
whose  care  it  is  sent  may  receipt  for  it,  or  the  one 
to  whom  it  is  sent,  at  the  option  of  the  express  com- 
pany. So  if  Gladys's  jewels  are  sent  to  her  by  ex- 
press in  care  of  Mr.  James  Green,  at  whose  house 
she  is  visiting,  then  Mr.  Green  or  his  representative 
may  receipt  for  them. 

In  large  households,  where  the  butler  usually 
receipts  for  packages,  he  should  be  instructed  to 
note  the  condition  of  packages  very  carefully,  and 
if  they  are  in  poor  condition  when  received,  he 
should  state  the  fact  on  the  receipt  he  gives  the 
company.  If  they  are  in  exceedingly  damaged  con- 
dition, the  expressman  usually  calls  attention  to  it ; 
but  unless  this  is  done  at  the  time  by  one  party  or 
the  other,  damages  cannot  be  claimed  for  any  loss 
subsequently  discovered,  the  presumption  being 
that  the  one  who  received  the  package  has  tam- 
pered with  its  contents.  A  case  came  under  my 
observation  where  valuable  lace  was  missing  from 
a  package  when  opened  :  the  company  declined  to 
make  the  loss  good  because  the  butler  had  receipted 


152     EVERY-DAY  BUSINESS   FOR  WOMEN 

for  it,  and  made  no  comment  on  the  condition  of 
the  package. 

Because  of  its  liability  for  damages  to  the  value 
of  the  amount  stated,  express  is  a  favorite  way  of 
sending  articles  of  value.  The  rates  are  based  upon 
three  things :  the  weight,  the  distance  to  be  traveled, 
and  the  value  of  the  package ;  the  minimum  weight 
for  which  a  rate  is  made  is  two  pounds.  This  rate 
will  vary,  however,  if  the  package  must  travel  by 
two  or  more  express  companies  to  reach  its  desti- 
nation. Each  express  company  has  particular  rail- 
road and  steamship  lines  which  act  as  carriers  for 
it ;  and  if  the  route  lies  over  different  roads,  the 
package  must  travel  by  different  companies.  The 
responsibility  of  the  first  express  company  ends 
with  the  delivery  of  the  parcel  to  the  second  com- 
pany, and  if  the  receipt  given  it  states  that  the 
parcel  was  received  in  good  condition,  company  one 
is  absolved  from  any  further  claims  upon  it.  This 
exemption  it  can  claim  because  this  provision  was 
stated  in  the  receipt  accepted  by  the  original 
sender:  the  company  which  first  records  its  receipt 
in  poor  condition  throws  the  blame  and  liability 
upon  the  one  from  whom  it  was  received. 

If  a  lost  package  has  been  undervalued  and  sent 
at  a  lower  rate,  only  the  damages  for  declared  value 
sent  at  such  rate  can  be  collected.  People  con- 
stantly undervalue  things  when  expressing  them. 


ON   SENDING  THINGS  153 

and  run  the  risk.  If  a  package  is  really  lost  or 
stolen  from  the  company's  office,  the  company 
should  pay  the  value  after  due  investigation  and 
patient  tracing  of  the  same.  But  the  application  for 
damages  must  be  made  within  sixty  days,  and  the 
receipt  must  be  attached  to  the  statement,  and  the 
claim  made  at  the  office  of  shipment. 

When  a  package  is  sent  for  which  it  is  desired 
that  the  recipient  should  pay  the  express  charges,  it 
should  be  marked  "Collect."  Many  people  mark 
such  packages  "C.  O.  D.,"  not  thinking  that  that  is 
an  abbreviation  for  **  Collect  on  delivery  the  value 
of  the  goods,"  or,  "Cash  on  Delivery."  This  form 
should  be  employed  only  when  goods  are  sent  with- 
out being  paid  for  in  advance ;  the  express  company 
charges  the  sender  with  the  cost  of  collection,  noti- 
fies him  of  any  failure  to  make  the  collection  within 
thirty  days,  and  may  return  the  property  to  him  at 
his  cost  for  both  trips  it  has  made.  Some  years  ago 
many  dressmakers  near  New  York  were  annoyed 
and  defrauded  by  having  packages  sent  to  them 
C.  O.  D.,  on  which  they  would  pay  charges,  think- 
ing them  to  have  been  sent  by  customers ;  and 
would  find  later  that  the  goods  had  been  sent  by  an 
unknown  party,  and  they  were  left  on  their  hands. 
This  fraud  was  rendered  possible  by  the  rule  of 
the  express  company  not  to  permit  C.  O.  D.  pack- 
ages to  be  delivered  and  opened  until  paid  for. 


154    EVERY-DAY  BUSINESS   FOR  WOMEN 

If  for  any  reason  the  recipient  of  a  package  which 
has  been  sent  "  Collect  "  is  unable  or  unwilling  to 
pay  the  charges,  the  company  does  not  deliver  it, 
but  holds  it  and  notifies  the  sender  of  the  con- 
signee's refusal  to  pay.  Thereupon  the  sender  must 
pay  the  charge,  or  else  the  package  is  held  by  the 
company  until  the  end  of  the  year,  when  the  accu- 
mulation of  such  packages,  and  those  undelivered 
for  any  other  reason,  is  sold  at  auction  after  due 
advertisement,  to  pay  the  charges  on  them.  There 
are  often  tragedies  connected  with  these  undeliv- 
ered packages,  so  that  those  sentimentally  inclined 
do  not  care  to  purchase  ;  but  they  are  rare  occasions 
for  the  commercially  minded  bargain-hunter. 

Exactly  the  same  regulations  do  not  apply  to 
freight ;  there  are  some  peculiarities  about  its  han- 
dling and  shipment. 

In  the  first  place,  freight  must  be  delivered  at 
the  railroad  station  or  steamship  wharf  ;  and  as 
freight  has  very  rough  handling,  it  should  be  most 
securely  packed  :  not  a  vacant  corner  must  be  left, 
and  the  boxes  should  be  of  the  stoutest.  Trunks 
may  be  sent  by  freight,  but  only  when  boxed  or 
crated,  so  that  they  may  be  carelessly  handled. 

When  goods  are  very  securely  packed,  so  that  no 
handling  is  liable  to  harm  them,  a  lower  freight 
rate  may  be  procured  by  marking  them  *' Re- 
leased." This  means  that,  in  consideration  of  the 


ON   SENDING  THINGS  155 

reduced  rate  of  freight  paid,  the  railroad  or  steam- 
ship company  which  acts  as  carrier,  is  thereby  re- 
leased from  any  possible  claim  for  damages  should 
the  goods  be  injured  in  transit.  When  a  large 
amount  of  freight  is  shipped,  there  is  an  appre- 
ciable saving  in  making  this  classification. 

The  rates  for  freight  are  very  reasonable  over 
most  of  the  eastern  roads,  unless  the  freight  must 
pass  over  lines  of  two  carriers  to  reach  its  desti- 
nation. Boxes  should  have  these  route-directions 
plainly  stated  on  them.  Thus,  goods  sent  from  El- 
mira,  N.  Y.,  to  Savannah,  Ga.,  should  be  labeled, 
"  Savannah,  Georgia,  via  N.  C.  R.  and  Merchants' 
and  Miners'  Transportation  Co.  from  Baltimore," 
otherwise  they  might  go  by  the  Erie  or  the  Dela- 
ware, Lackawanna  and  Western,  to  New  York,  and 
thence  to  Savannah  via  the  Ocean  Steamship  Co., 
—  a  more  expensive  way ;  or  by  rail  all  the  way; 
and  water  freight-rates  are  much  cheaper  than 
railroad  rates. 

In  sending  large  quantities  of  goods,  as  when  one 
moves  to  another  city,  it  is  cheaper  and  better  to 
hire  a  whole  car ;  then  the  goods  can  be  securely 
packed,  they  are  all  together,  and  frequent  handling 
is  avoided.  The  company  allows  forty-eight  hours 
for  unloading  the  car ;  after  that  period  there  is  a 
charge  for  the  use  of  the  car  and  the  track. 

Large  factories   have  private  sidings  or  tracks 


156     EVERY -DAY  BUSINESS   FOR  WOMEN 

that  run  directly  to  the  factory,  and  goods  are 
loaded  into  the  cars  there,  and  then  the  cars  are 
drawn  on  to  the  main  track  and  sent  on  their 
way. 

When  the  freight  arrives  at  the  station  to  which 
it  was  addressed,  some  firm  of  carters  usually  pays 
the  charges  on  it,  gets  the  receipted  bill  of  lading, 
and  delivers  the  goods  to  the  consignee,  that  is,  the 
person  to  whom  they  were  sent.  To  the  freight 
charges  are  added  the  costs  of  cartage,  and  the 
goods  are  not  delivered  until  all  these  charges  are 
paid.  This  is  a  great  convenience  to  customers  who 
have  not  their  own  draymen,  and  is  profitable  for 
the  carters. 

When  freight  is  taken  to  the  office  of  a  steamer 
or  railroad  for  shipment,  a  receipt  is  given  to  the 
shipper,  which  is  called  a  "  bill  of  lading."  Like  the 
express  receipts  already  discussed,  this  bill  of  lading 
is  really  a  contract  between  sender  and  carrier,  and 
the  responsibility  of  the  carrier  is  very  carefully 
limited.  It  disclaims  responsibility  for  damage  in- 
flicted "by  causes  beyond  its  control,"  such  as  fire, 
floods,  strikes,  riots,  leakage,  breakage,  heat,  frost, 
wet,  or  decay.  It  declines  to  promise  shipment  by 
any  particular  train  or  vessel,  or  in  time  for  any 
market ;  its  general  business  governs  such  things. 
It  will  not  carry  inflammable  or  explosive  or  danger- 
ous goods,  unless  their  nature  is  specifically  stated 


ON   SENDING   THINGS  157 

in  the  bill  of  lading,  and  a  rate  corresponding  to 
their  classification  charged.  In  case  of  loss  or 
damage  to  other  goods,  the  senders  must  pay  all 
damages  thus  inflicted  if  they  have  concealed  the 
nature  of  their  shipment.  As  a  consequence  of  sev- 
eral disasters,  where  a  collision  has  exploded  cars 
of  dynamite,  there  has  been  strong  talk  about  the 
"  criminal  negligence "  of  railroad  companies  in 
carrying  such  things  on  the  same  train  with  passen- 
gers, or  even  on  the  same  tracks.  But  as  railroads 
still  regard  lives  as  of  less  account  than  dollars,  the 
practice  continues. 

The  bill  of  lading  should  be  carefully  kept  until 
the  sender  is  notified  of  the  safe  arrival  of  his  goods ; 
for  if  they  fail  to  arrive,  or  have  been  damaged,  he 
will  need  this  evidence  in  his  claim  for  damages, 
which  he  must  file  within  thirty  days. 

There  are  many  people  who  are  ignorant  of  the 
fact  that  it  is  possible  to  send  freight  C.  O.  D.,  that 
is,  to  have  the  goods  paid  for  before  delivery,  or  to 
have  the  charges  for  packing  and  shipping  house- 
hold goods  collected  thus.  This  is  the  way  it  is  done. 
The  goods  are  marked  "  C.  O.  D."  and  the  amount 
due  stated  thereafter,  and  are  sent  to  one's  self  with 
instructions  to  notify  the  buyer.  Let  us  imagine, 
for  instance,  that  John  Doe  is  sending  to  Richard 
Roe,  at  New  York  City,  goods  valued  at  forty-two 
dollars.  He  labels  the  crate  or  box  in  this  manner : 


158     EVERY-DAY  BUSINESS   FOR  WOMEN 

C.  O.  D.  $42.00 

John  Doe, 

notify  Richard  Roe, 

321  Broadway, 

New  York  City. 

The  agent  fills  out  the  bill  of  lading  accordingly. 
John  Doe  then  takes  this  to  his  bank,  and  in  the 
blank  on  the  reverse  side  indorses  his  name.  The 
bank  then  undertakes  to  collect  this  amount,  as  it 
would  a  check  or  a  note  left  for  collection ;  and  to 
accomplish  that  end  forwards  the  bill  of  lading  to 
its  correspondent  at  New  York,  accompanied  by  a 
draft  on  Richard  Roe  for  the  amount.  Roe  is  duly 
notified  by  the  bank,  and  goes  there  and  pays  the 
forty-two  dollars  and  all  charges,  and  the  bank  then 
surrenders  to  him  the  bill  of  lading,  without  which 
he  could  not  claim  the  goods.  The  bank  at  New 
York  notifies  John  Doe's  bank  of  the  collection, 
and  the  amount  is  placed  to  the  credit  of  John  Doe. 
This  is  an  absolutely  safe  way,  for  if  the  railroad 
agent  surrenders  the  goods  to  Richard  Roe  without 
the  bill  of  lading,  the  bank  holds  the  railroad  liable 
for  the  C.  O.  D.  amount,  the  face  of  the  draft,  and 
collects  it  from  the  road. 

Business  men  use  some  queer  abbreviations 
which  puzzle  the  uninitiated,  especially  foreigners. 
"F.  O.  B."  is  one  of  these,  and  means  "free  on 
board  " ;  that  is  to  say,  the  goods  will  be  put  on  the 


ON   SENDING   THINGS  159 

train  without  charging  for  cartage  from  factory  or 
store,  as  the  case  may  be,  to  the  freight-cars.  A 
factory  which  has  its  own  siding  can  economize  in 
this  way,  as  the  rent  it  pays  the  railroad  for  the 
tracks  is  small  compared  to  the  equipment  for  haul- 
ing which  is  thus  rendered  unnecessary. 

When  a  package  is  transferred  from  one  carrier 
to  another,  the  first  one  disclaims  any  further  re- 
sponsibility, just  as  express  companies  do. 

When  goods  pass  through  the  customhouse  and 
the  owner  is  not  present,  a  customs  broker  pays  the 
duties  and  collects  them,  with  his  commission,  from 
the  absent  owner,  to  whom  he  forwards  the  goods. 

Sometimes  a  package  of  freight  crosses  the  ocean, 
then  the  continent,  and  finally  makes  its  last  trip 
on  a  stage  that  takes  it  a  hundred  and  thirty  miles, 
to  some  mining  camp  or  other  desolate  outpost  of 
civilization.  Sometimes  it  goes  across  the  conti- 
nent to  Portland,  Oregon,  then  up  the  Pacific  by 
that  marvelous  inland  passage,  glacier-guarded,  to 
Alaska,  where  it  is  carried  by  reindeer  teams  or 
dog  teams  across  the  frozen  country  to  settlements 
within  the  Arctic  Circle.  Strange  tales  some  pack- 
ages could  tell,  even  those  that  travel  only  under 
the  dominion  of  "  the  starry  flag." 

Since  many  rules  apply  equally  to  the  three 
methods  of  sending  things,  we  may  summarize  the 
subject  thus  :  — 


i6o      EVERY-DAY   BUSINESS   FOR  WOMEN 

1.  Always  address  packages  very  plainly,  and  dis- 
tinctly, and  put  the  name  of  the  sender  on  them. 

2.  Pack  them  securely,  that  they  may  neither  do 
nor  receive  harm. 

3.  Always  take  a  receipt,  and  read  carefully  the 
conditions  upon  which  it  is  issued  ;  and  keep  it  care- 
fully until  notified  of  the  safe  arrival  of  the  goods. 

4.  Always  notify  the  sender  of  the  receipt  of  a 
package  addressed  to  you,  and  do  it  promptly. 

5.  Be  honest  in  the  description  of  the  articles 
sent ;  it  is  "penny  wise  and  pound  foolish  "  to  send 
valuables  at  a  reduced  rate,  because  the  carrier  is 
in  ignorance  of  their  presence  in  the  package ;  for 
if  lost  no  sufficient  damage  can  be  claimed. 

6.  Remember  the  difficulties  and  vicissitudes  of 
travel,  and  allow  a  reasonable  time  for  the  safe  de- 
livery of  parcels. 

7.  Make  all  claims  for  loss  or  damage  promptly. 


CHAPTER  XIII 

OTHER  people's  PROPERTY 

There  are  several  situations  in  the  ordinary  busi- 
ness of  life  where  other  people's  property  comes 
temporarily  into  our  possession  or  under  our  con- 
trol, situations  which  sometimes  involve  much  com- 
plication ;  and  conversely,  our  property  is  some- 
times in  the  hands  of  other  people,  and  the  rules 
that  govern  the  use  in  one  case  do  so  in  the  other 
also.  Where  we  voluntarily  place  this  control  in 
another's  hands,  he  is  constituted  our  agent,  and  we 
shall  treat  of  the  duties  and  responsibilities  of  that 
relation  later  on.  It  is  the  more  informal  kinds  of 
responsibility  for  the  property  of  others  that  first 
claim  our  attention. 

One  is  sometimes  asked  to  take  charge  of  a  fund 
that  is  being  raised  for  some  object,  thus  becoming 
the  treasurer ;  what  are  the  duties  and  responsibili- 
ties of  her  office,  temporary  though  it  is  .'*  Obviously 
the  first  duty  of  any  treasurer  is  to  keep  an  accu- 
rate record  of  all  money  received  and  expended.  To 
do  this  all  bills  should  be  paid  by  check,  and  re- 
ceipts taken,  for  these  constitute  the  vouchers  for 
the  expenditures ;  and  all  money  received  should 


i62     EVERY-DAY  BUSINESS   FOR  WOMEN 

be  receipted  for,  and  the  stubs  in  the  receipt  book 
become  the  vouchers  for  these  items.  Then,  when 
the  account  is  balanced,  the  credit  side  may  read : 
"  So  much  expended,  see  vouchers  attached ;  so 
much  in  bank,  see  bank-book  balanced ;  cash  on 
hand  (or  perhaps  loans),  see  money  and  notes  in  the 
cash-box."  An  account  kept  thus  can  be  understood 
by  any  one  authorized  to  examine  it.  Such  an  ex- 
aminer is  called  an  auditory  and  a  treasurer's  ac- 
counts should  be  audited  at  the  end  of  the  term  of 
office,  be  it  a  year  or  a  day.  If  the  sum  is  large,  the 
bank  officials  or  certified  public  accountants  should 
be  employed ;  if  small,  two  members  of  the  society 
or  organization  should  be  appointed  a  committee  to 
audit  the  accounts  and  report  to  the  society ;  the 
acceptance  by  the  society  of  the  report  of  a  finan- 
cial officer,  after  such  auditing,  clears  the  treasurer 
from  any  further  responsibility  for  past  transac- 
tions. 

It  is  evident,  therefore,  that  it  is  of  prime  impor- 
tance for  the  treasurer  to  keep  these  funds  safely ; 
some  women,  good  women,  too,  sometimes  forget 
this  duty,  and  if  short  of  funds  borrow  from  the 
trust  funds  in  their  keeping,  without  giving  any 
accounting  therefor.  Of  course  they  intend  to  make 
good  the  shortage,  and  generally  do  ;  but  the  prin- 
ciple is  bad.  Trust  funds  ought  to  be  kept  in  such 
condition  that  at  any  moment  the  account  could  be 


OTHER  PEOPLE'S   PROPERTY  163 

inspected  and  found  correct.  If  for  any  reason  a 
loan  is  made  to  any  one  from  these  funds,  it  should 
be  entered  with  full  particulars  on  the  account- 
book,  and  a  note  for  that  amount,  given  by  the  bor- 
rower, should  be  kept  with  the  assets  or  cash  ;  for 
this  loan  the  guardian  of  the  funds  is  personally 
responsible,  unless  it  was  made  by  the  authorization 
of  the  society.  The  wisest  plan  is  to  deposit  the 
money  in  bank  ;  but  the  sum  is  often  too  insignifi- 
cant for  that. 

In  the  event  of  the  failure  of  the  bank  in  which 
one  had  placed  trust  funds,  the  trustee  would  not 
be  held  responsible ;  but  if  kept  at  home,  and  there 
lost  in  some  unproved  way,  either  by  the  dishonesty 
of  a  servant  or  by  burglary,  the  responsibility  would 
rest  upon  the  holder  of  the  fund :  it  was  her  duty  to 
guard  the  fund  carefully,  and  she  should  make  good 
the  loss.  No  man  or  woman  of  a  strict  sense  of 
honor  would  dream  of  doing  otherwise ;  because, 
unless  it  was  notoriously  stolen,  the  suspicion  that 
the  funds  had  been  misappropriated  would  always 
have  a  chance  to  rise,  and  no  honorable  man  would 
allow  it  to  be  said  that  trust  funds  had  disappeared 
while  in  his  keeping. 

Suppose  one  person  undertakes  to  buy  theatre 
tickets  for  a  party,  and  has  the  misfortune  to  lose 
one  before  she  has  distributed  them  ;  who  shall 
bear  the  loss  ?  Manifestly  the  loser,  although  she 


i64    EVERY-DAY  BUSINESS   FOR  WOMEN 

was  buying  the  tickets  as  an  act  of  kindness,  and 
received  no  compensation  for  so  doing. 

Or  suppose  some  rings  have  been  sent  by  a  jew- 
eler to  the  president  of  a  class  in  school,  in  order 
that  a  selection  may  be  made  by  the  class,  and  an 
order  given  for  class  rings.  During  the  night  one  is 
stolen  ;  the  loss  will  fall  upon  the  person  to  whom 
the  jeweler  sent  them.  In  one  such  case,  however, 
which  I  knew  about,  the  class  assumed  the  loss, 
and  shared  it  equally,  arguing  justly  that  the  rings 
had  been  sent  for  their  convenience,  and  that  their 
confidence  in  their  president  was  such  that  they 
were  certain  that  the  ring  had  disappeared  with- 
out her  connivance,  and  not  by  her  fault.  Had  they 
not  taken  this  generous  stand,  the  loss  must  have 
fallen  upon  the  unfortunate  officer. 

The  appropriation  of  trust  funds  is  technically 
termed  embezzlement.  In  the  business  world,  men 
whose  duty  it  is  to  handle  large  funds  are  bonded; 
that  is  to  say,  a  fidelity  assurance  company  will 
give  bonds  for  a  man's  honesty  to  the  institution 
employing  him,  upon  payment  to  it  by  the  man  of 
a  fixed  sum ;  for  a  bond  of  one  hundred  thousand 
the  rate  is  about  one  hundred  and  fifty  dollars  per 
annum.  This  is  really  honesty  insurance  ;  for  if  the 
man  so  bonded  embezzles  the  funds,  the  company 
will  reimburse  his  employer  to  the  extent  of  its 
bonded  contract.  The  law  manages  such  cases. 


OTHER  PEOPLE'S   PROPERTY  165 

Before  special  companies  did  this  business  it  was 
necessary  for  a  man  desiring  a  position  of  financial 
responsibility  to  get  some  friend  to  "go  on  his 
bond  "  ;  this  friendly  bondsman  had  to  be  a  man  of 
large  resources,  so  that  when  he  guaranteed  his 
friend's  honesty  for,  say,  one  hundred  thousand  dol- 
lars, it  could  be  shown  that  he  was  possessed  of 
property  to  that  amount,  which  would  be  forfeited 
if  the  bonded  man  embezzled.  It  often  happened, 
however,  that  trustworthy  and  competent  men  were 
unable  to  secure  bondsmen  among  their  acquaint- 
ances, and  were  sometimes  debarred  from  lucrative 
positions  by  this  lack.  So  these  companies  came 
into  existence,  which  will  bond  any  man  who  will 
pay  the  rate  for  such  insurance,  and  can  give  reli- 
able references  and  satisfactorily  answer  a  searching 
inquiry  into  his  business  record  and  financial  stand- 
ing. 

When  one  borrows  property,  no  matter  what  it 
is,  even  books  of  little  value,  and  there  is  no  con- 
sideration given,  the  law  nevertheless  takes  cogni- 
zance of  the  transaction  and  is  very  exacting ;  it 
holds  the  borrower  liable  for  the  slightest  injury  to 
the  property,  exacts  its  prompt  return  within  a  rea- 
sonable time,  and  requires  the  borrower  to  exercise 
extraordinary  care  of  borrowed  things,  even  greater 
care  than  he  would  exercise  over  his  own  belong- 
ings. People  of  nice  honor  would  fulfill  all  these 


i66     EVERY-DAY  BUSINESS   FOR  WOMEN 

requirements  regardless  of  law ;  the  careless  and 
selfish  need  to  be  reminded  that  lenders  have  legal 
rights. 

Turning  now  to  the  subject  of  recognized  legal 
agency,  we  find  that  **  an  agent  is  one  who  acts  for 
or  represents  another,  styled  his  principal " ;  and 
he  may  become  an  agent  either  by  appointment  or 
by  ratification. 

Ratification  is  defined  as  the  adoption  of  the  acts 
of  an  unauthorized  agent.  Suppose  one  has  pro- 
perty for  sale,  and  a  real-estate  man,  knowing  this, 
finds  a  purchaser  for  it ;  if  his  customer  is  accepted, 
the  act  of  the  real-estate  man  is  practically  ratified, 
and  he  proceeds  with  the  sale  just  as  if  he  had 
been  regularly  appointed  the  agent  for  the  property. 
There  are  a  few  conditions  to  which  one  should 
give  heed  before  ratifying  any  unauthorized  acts. 

First :  the  person  assuming  agency  must  have 
professed  to  act  for  a  principal,  not  for  himself,  and 
for  an  existing  principal ;  he  could  not  act  for  a  cor- 
poration that  was  not  in  existence  at  the  time  of 
his  act,  even  though  a  corporation,  formed  after- 
wards, would  like  to  adopt  the  benefit  of  that  act. 

Second  :  one  should  never  approve  the  acts  of  such 
self-appointed  agents  unless  there  is  full  knowledge 
of  all  the  facts  of  the  case ;  for  ratification  carries 
with  it  all  the  legal  responsibilities  of  principal  for 
agent ;  and  full  knowledge  is  absolutely  necessary. 


OTHER   PEOPLE'S   PROPERTY  167 

for  the  result  accomplished  may  have  been  reached 
by  trickery  ;  and  the 

Third  condition  of  ratification  is  that  an  act  can- 
not be  ratified  in  part  and  repudiated,  or  disowned, 
in  part ;  and  if  one  accepts  the  results,  one  thereby 
authorizes  the  means  used  to  secure  them. 

A  man  may  become  an  agent  by  direct  appoint- 
ment, or  by  the  operation  of  law.  If  he  asserts  to 
others  that  he  is  the  agent  for  a  certain  person,  and 
this  claim  is  not  disputed  by  that  person,  the  man 
is  legally  an  agent. 

A  person  may  become  an  agent  by  the  necessi- 
ties of  the  case.  Suppose  a  driver  drops  dead  on  his 
cart ;  another  man  assumes  charge  of  the  horses 
and  starts  to  drive  them  to  the  owner's  stables.  On 
the  way  he  accidentally  injures  another  team  by 
collision  ;  the  owner  of  the  first  team  will  be  held 
responsible  for  the  injury,  since  it  was  the  act  of  his 
agent  by  necessity} 

Another  case  of  compulsory  agency  is  that  in 
which  a  wife,  acting  as  agent  for  her  husband, 
pledges  his  credit  for  the  necessities  of  life,  if  he 
refuses  to  give  them  to  her ;  and  this  she  may  do 
even  against  his  will. 

Any  person  who  can  legally  make  a  contract  may 
appoint  an  agent,  but  it  is  unsafe  to  accept  the  ap- 
pointment as  agent  by  a  minor,  —  a  legal  infant,  — 

*  Case  cited  by  Burdick  in  Essentials  of  Business  Law, 


i68     EVERY-DAY  BUSINESS   FOR  WOMEN 

because  later,  when  he  is  of  age,  he  may  repudiate 
the  agent's  acts  if  he  wishes  to  do  so. 

Usually  the  only  qualification  for  an  agent  is  that 
he  shall  be  competent  to  perform  the  act  delegated 
to  him.  But  there  are  some  special  forms  of  agency 
that  require  special  preparation.  Of  such  are  attor- 
neys-at-law,  one's  agents  in  the  court-room,  whose 
training  is  prescribed,  and  authority  regulated,  by 
the  rules  of  the  court  in  which  they  practice. 

Sometimes,  in  case  of  prolonged  absence  from 
home,  one  desires  to  give  a  relative,  friend,  or 
trusted  employee  the  right  to  transact  business  for 
her.  To  do  this  one  should  draw  up  a  document,  or 
letter,  giving  the  party  the  power  of  attorney ;  this 
document  should  state  carefully  the  kinds  of  acts 
which  it  authorizes  the  person  to  perform,  and 
should  be  witnessed  before  a  notary  public.  Any 
person  may  thus  be  constituted  another's  attorney, 
and  within  the  specified  limits  has  power  to  trans- 
act business  for  his  principal,  without  consultation. 

There  are  many  kinds  of  agents,  but  a  brief 
enumeration  is  all  that  is  necessary  here.  Auction- 
eers are  agents  for  those  whose  property  they  sell ; 
they  become  agents  for  the  buyer,  when  they  make 
a  memorandum  of  the  sale  which  binds  the  seller. 
Bank  cashiers  are  agents  for  their  banks,  and  so 
a  bank  is  bound  to  stand  any  loss  arising  from 
the  cashier's  certification  of  checks.    Brokers  of  all 


OTHER   PEOPLE'S   PROPERTY  169 

sorts,  stock,  real-estate,  or  any  other,  are  agents 
sometimes  for  the  buyer,  sometimes  for  the  seller. 
Factorsy  or  those  who  handle  goods  on  commis- 
sion, are  agents;  frequently  they  advance  the  money 
for  the  raising  and  harvesting  of  crops,  and  this 
constitutes  a  lien,  or  legal  claim,  on  the  crop,  which 
they  deduct  from  the  proceeds  of  its  sale.  Ship's 
masters  are  agents  for  the  company  in  a  foreign 
port  of  call,  and  may  pledge  the  company's  credit 
for  necessary  supplies  and  repairs.  The  butler  who 
signs  an  express  receipt,  or  the  man  who  gets  your 
baggage  checked,  is  your  legal  agent,  and  his  acts 
and  failures  are  yours. 

The  question  arises  next  as  to  the  extent  of  a 
principal's  or  employer's  liability  for  the  acts  of  his 
agent,  no  matter  how  appointed.  Generally  speak- 
ing, the  employer  is  responsible  for  all  the  acts  of 
the  agent  which  come  "within  the  scope  of  his 
employment." 

He  is  liable  for  any  contract  which  he  has  author- 
ized his  agent  to  make  for  him,  even  though  the 
agent  has  ignored  his  instructions,  provided  that 
the  other  party  was  ignorant  of  the  agent's  dis- 
regard of  instructions.  Servants  who  have  been 
authorized  to  make  household  purchases  may  con- 
tinue to  buy,  unless  the  tradesman  is  informed,  even 
though  the  servants  have  been  discharged. 

The  reason  for  these  rules  is  that  the  principal  is 


I70     EVERY-DAY  BUSINESS   FOR  WOMEN 

liable  for  wrongs.  In  the  words  of  an  American 
judge,  "Every  man  in  the  management  of  his  own 
affairs,  whether  by  himself  or  his  agents  or  servants, 
shall  so  conduct  them  as  not  to  injure  another  ;  and 
if  he  does  not,  and  another  thereby  sustains  damage, 
he  shall  answer  it." 

If  a  chauffeur  is  arrested  for  injuring  people  while 
driving  under  his  employer's  orders,  the  owner  of 
the  car  is  generally  sued.  Why }  The  agent  in  such 
cases  is  personally  liable,  as  well  as  his  principal ; 
but  as  only  one  judgment  can  be  collected,  suit  is 
brought  against  the  party  who  is  most  Hkely  to  be 
able  to  pay  the  penalty  adjudged  by  the  court. 

If  a  driver  should  run  his  horses  over  a  flower- 
bed, or  lead  them  across  a  farmer's  ploughed  and 
growing  crop,  the  employer  as  well  as  the  driver 
would  be  responsible  for  the  resultant  damage, 
although  he  may  have  forbidden  the  acts  of  his 
agent.  This  is  part  of  the  risk  one  runs  in  employ- 
ing agents.  But  an  employer  or  principal  would  not 
be  liable  for  murder  or  burglary  committed  by  a 
man  whom  he  employed  in  other  ways  as  agent, 
unless  the  criminal  act  was  really  authorized,  or  later 
adopted,  or  its  benefits  accepted  by  the  principal. 

If  an  agent  violates  the  laws  of  the  board  of 
health,  or  of  excise,  as  when  he  sells  liquor  without 
a  license,  the  principal  is  held  for  the  agent's  crimi- 
nal act ;  he  should  have  exercised  more  supervision 


OTHER   PEOPLE'S   PROPERTY  171 

over  his  agent.  If  an  agent  makes  a  contract  when 
he  has  no  authority,  and  the  principal  refuses  to 
agree  to  it,  the  agent  must  pay  any  damage  sus- 
tained by  the  innocent  third  party.  "The  innocent 
third  party  "  is  the  one  affected  by  the  disagree- 
ment of  principal  and  agent. 

In  making  contracts  with  an  agent,  one  should 
always  note  that  they  are  made  in  the  name  of  the 
principal,  and  signed  in  that  name,  "by  J.  Doe, 
Agent."  Otherwise  the  contract  will  be  with  the 
agent  personally,  not  with  the  principal. 

Agency  is  terminated  in  many  ways  :  either  party 
may  end  it  without  the  consent  of  the  other ;  but 
the  one  so  ending  it  is  liable  for  any  damages  that 
the  other  party  may  sustain  by  such  action.  If  any 
third  person  has  forced  the  principal  to  dismiss  the 
agent,  or  even  peacefully  persuaded  the  principal  to 
break  his  contract  with  the  agent,  such  person  can 
be  sued  by  the  agent  for  damages,  as  the  agent  was 
unwilling  to  relinquish  his  agency.  Or  death  may 
terminate  the  agency,  or  a  legal  judgment  of  insanity 
or  bankruptcy  on  either  side  ;  and  for  women,  mar- 
riage terminates  the  relation. 

It  is  important  that  notice  of  the  termination  of 
agency  should  be  given,  or  the  principal  will  be  held 
liable  for  the  agent's  acts  in  favor  of  those  so  misled. 

The  reciprocal  duties  of  this  relation  may  be  thus 
stated:  — 


172     EVERY-DAY  BUSINESS  FOR  WOMEN 

The  principars  duty  to  his  agent :  he  must  keep 
his  contract  with  his  agent,  pay  him  fairly  for  his 
services,  make  good  his  expenditures,  and  save  him 
harmless  from  all  claims  arising  from  his  authorized 
or  ratified  acts,  unless  such  acts  were  known  to  be 
illegal. 

The  agent's  duty  to  his  principal:  he  is  bound 
both  by  law  and  morals  to  serve  him  loyally,  "to 
give  him  all  the  information  which  he  obtains  re- 
lating to  the  business  intrusted  to  his  care ;  to  obey 
instructions  ;  to  exercise  proper  skill,  and  to  account 
fully  and  honestly  for  everything  that  comes  into 
his  hands  in  the  agency." 

There  is  a  well-known  story  told  of  Stephen 
Girard,  the  eccentric  Philadelphia  millionaire.  A 
captain  was  sent  out  by  him  with  a  cargo,  which  he 
was  to  sell  at  a  certain  port,  and  then  reload  his 
vessel  with  a  certain  specified  commodity.  When 
the  captain  returned,  he  reported  to  Mr.  Girard  that 
he  had  duly  sold  his  cargo,  but  finding  that  he  could 
make  a  larger  profit  for  the  owner  by  bringing  home 
a  different  cargo  than  that  which  his  orders  called 
for,  he  had  done  so,  and  made  a  handsome  profit  for 
his  employer.  Mr.  Girard  listened  to  the  story,  and 
then  discharged  the  captain  from  his  employ ;  his 
agents  must  obey  implicitly. 

One  should  exercise  much  judgment  before  ap- 
pointing an  agent,  making  due  inquiries  into  his 


OTHER   PEOPLE'S   PROPERTY  173 

ability  and  reputation  and  moral  standing;  and 
having  chosen  him,  one  should  stand  loyally  back 
of  him  and  support  his  endeavors  to  make  a  success 
of  matters  intrusted  to  him. 

And  when  in  turn  one  becomes  an  agent,  let  him 
remember  that  due  care  must  be  exercised,  since  he 
acts  for  another,  and  he  must  endeavor  so  to  con- 
duct the  business  that  it  shall  not  misrepresent  the 
principal  whom  he  serves. 


CHAPTER   XIV 

TAXES   AND    CUSTOMS 

That  "there  is  nothing  certain  but  death  and 
taxes,"  is  an  old  grouping  of  two  necessities 
deemed  alike  important  and  imperative;  for  the 
summons  of  the  tax-gatherer  is  peremptory  and 
not  to  be  disregarded.  Pay  or  lose,  is  the  alterna- 
tive. 

The  question  naturally  arises.  Why  do  people  tol- 
erate such  an  unpleasant  custom  ?  And  to  answer 
this  we  must  go  back  into  the  dim  regions  of  his- 
tory, and  make  observations  upon  the  simplest 
tribes  known  now  to  ethnologists.  For  in  both 
cases  we  find  a  tendency  to  the  headship  of  a  dom- 
inant personality :  the  strongest  or  wisest  man  is 
chief  or  king ;  and  the  first  sign  of  his  kingship  is 
that  the  others  pay  tribute  of  some  sort  to  him, 
and  by  this  means  keep  his  revenues  sufficient  to 
maintain  a  better  state  than  the  rest  of  the  tribe, 
and  to  assume  also  some  outward  symbol  or  appur- 
tenance of  power. 

Briefly  stated,  that  is  the  real  origin  of  taxes :  a 
self-imposed  burden  on  the  community  to  gratify 
its  own  desire  for  a  distinctive  head.  During  the 


TAXES   AND   CUSTOMS  175 

centuries  of  custom  peoples  and  rulers  forgot  this 
origin,  and  kings  came  to  regard  their  people  as 
simply  a  means  for  supplying  their  revenues,  which 
they  were  free  to  spend  as  they  pleased.  This  view 
reached  its  ghastly  climax  in  the  French  Revolu- 
tion ;  for  in  the  mean  time  the  idea  had  been  dawn- 
ing that  since  taxes  were  paid  by  the  people  as 
individuals,  they  should  be  expended  in  part  for  the 
benefit  of  the  people  as  a  whole. 

The  history  of  the  struggle  of  the  English  peo- 
ple for  political  freedom  centres  around  no  no- 
bler purpose  than  the  control  of  the  public  purse, 
its  filling  and  emptying.  The  Ship-Money  tax  of 
Charles  I  was  the  firebrand  that  first  aroused  the 
conflagration  of  the  English  Civil  War.  Our  own 
Revolutionary  patriots  were  aroused  by  various 
acts  of  tyranny,  but  by  none  that  they  resented 
more  than  by  "taxation  without  representation." 
The  control  of  the  purse-strings  was  regarded  as 
the  touchstone  of  sovereignty. 

The  story  of  the  different  theories  of  taxation 
that  have  prevailed  is  a  long  and  interesting  one, 
but  for  that,  one  should  consult  standard  histories 
of  economics.  Here  we  shall  content  ourselves  with 
the  present  theory,  still  largely  based  upon  the 
teachings  of  Adam  Smith,  who  in  the  eventful  year 
1776  published  his  "  Wealth  of  Nations." 

In  the  older  days  taxes  were  levied  regularly  and 


176     EVERY-DAY  BUSINESS   FOR  WOMEN 

irregularly ;  for  if  the  king  desired  more  cash  for 
his  luxuries  or  dissipations,  or  to  carry  on  an  ambi- 
tious war,  or  to  repel  an  invasion,  he  simply  imposed 
a  new  tax,  which  frequently  took  the  form  of  a  cus- 
toms duty  on  exports.  These  taxes  were  at  the  dis- 
posal of  the  sovereign,  and  it  is  related  that  Edward 
II,  having  ordered  one  hundred  and  fifty  thousand 
gallons  of  French  wine  for  his  coronation,  settled 
the  bill  by  turning  over  a  share  of  the  customs  to 
the  man  who  had  supplied  the  wine.  He  paid  the 
wages  of  his  soldiers,  and  for  his  wife's  jewels,  by 
similar  orders  on  the  customs.^ 

Taxes  are  now  levied  for  the  support  of  the  gov- 
ernment, whether  that  be  national,  state,  or  muni- 
cipal ;  and  since  we  hold  that  **  government  derives 
its  just  powers  from  the  consent  of  the  governed," 
our  taxes  are  assessed  by  bodies  representing  the 
different  departments  of  government.  Simply  de- 
fined, "  a  tax  is  a  charge  or  burden  laid  upon  per- 
sons or  property  for  the  support  of  the  government." 

The  Federal  government,  that  is,  the  govern- 
ment of  the  United  States,  derives  its  revenues 
chiefly  from  taxes ;  these  taxes  are  indirect  taxes, 
that  is  to  say,  they  are  not  assessed  upon  particu- 
lar individuals.  During  the  Civil  War  and  for  some 
years  afterwards,  and  again  during  the  Spanish- 

^  The  King's  Customs,  by  Henry  Alton  and  Henry  Hurst  Hol- 
land. 


TAXES   AND   CUSTOMS  177 

American  War,  the  government,  by  congressional 
enactment,  increased  the  indirect  taxes,  and  im- 
posed some  direct  ones  in  the  shape  of  revenue 
stamps  which  had  to  be  affixed  to  checks,  receipts, 
deeds,  and  all  business  papers,  and  added  much  to 
the  cost  of  business  transactions.  Because  of  the 
rare  imposition  of  a  direct  tax,  these  were  felt  to 
be  burdensome ;  and  the  cost  of  war  was  brought 
home  to  each  individual  whenever  he  sent  a  tele- 
gram or  wrote  a  check  or  a  receipt.  The  revenue 
derived  was  enormous,  and  the  taxes  were  justified 
only  by  the  prodigious  war  expenses.  They  were 
repealed  as  soon  as  possible. 

Ordinarily  the  main  revenue  of  the  government 
comes  from  the  customs  dues,  the  sums  paid  as 
duty  on  articles  imported  from  abroad.  The  law 
which  contains  the  schedules  of  articles  of  import, 
their  classification,  and  the  rates  of  duty  levied  on 
them,  is  called  a  tariff.  The  taxes  thus  levied  are 
collected  at  customhouses  established  at  the  prin- 
cipal ports,  along  the  borders  of  Canada  and  Mex- 
ico, and  at  some  large  inland  cities.  To  these  latter, 
goods  may  be  shipped  from  abroad  directly,  la- 
beled "  in  bond,"  and  then  they  will  not  be  opened 
and  inspected  until  the  specified  customhouse  is 
reached.  The  purpose  of  a  tariff  on  imported  goods 
is  twofold :  first,  to  raise  a  revenue,  and  second,  to 
foster  American  industries  by  making  it  expensive 


178     EVERY-DAY  BUSINESS   FOR  WOMEN 

to  import  articles  that  would  otherwise  compete  in 
price  with  those  made  at  home. 

There  is  always  a  temptation  to  bring  in  goods 
so  concealed  that  the  inspectors  at  the  custom- 
house cannot  find  them  and  levy  duty  on  them.  It 
seems  especially  hard  to  pay  a  duty  on  goods  just 
because  one  crosses  the  invisible  boundary  line 
between  Canada  and  the  United  States.  This  con- 
cealment of  articles  is  technically  known  as  smug- 
gling; and  the  penalty  for  it  is  payment  of  a  fine 
and  confiscation  of  the  goods ;  they  are  seized  by 
the  customhouse  or  Treasury  officials,  and  sold  at 
public  auction,  unless  redeemed.  A  wealthy  woman 
recently  attempted  to  smuggle  into  the  country 
eighty  thousand  dollars'  worth  of  tapestries  and  art 
objects;  they  were  brought  in  by  a  friend  and  la- 
beled "  household  goods,"  in  order  to  obtain  free 
entry.  But  the  agents  of  the  Treasury  Secret  Ser- 
vice in  Paris  had  sent  word  of  this  shipment  and 
the  fraud  was  discovered.  Thirty  thousand  dollars 
were  assessed  as  the  regular  duties,  and  a  penalty 
of  forty  thousand  dollars  added;  and  after  these 
amounts  were  paid,  the  confiscated  goods  were  re- 
leased to  the  offender  only  upon  payment  of  eighty 
thousand  dollars. 

The  duty  levied  is  based  on  the  value  of  the 
goods  imported,  and  people  sometimes  cheat  the 
government  by  swearing  to  a  false  valuation ;  they 


TAXES   AND   CUSTOMS  179 

will  even  go  to  the  extent  of  having  dishonest  bills 
made  out  in  Paris,  Rome,  London,  or  Berlin,  to  offer 
as  proof  of  value.  Undervaluation  is  punished  by 
a  penalty-duty  which  increases  with  each  one  per 
cent  of  value  added,  by  the  customhouse  appraiser's 
estimate,  to  the  owner's  entry.  If  the  goods  have 
been  undervalued  seventy-five  per  cent,  they  may 
be  seized  by  the  government.  Formerly  passengers 
were  required  to  make  out  a  declaration  and  swear 
to  it,  so  that  a  false  statement  was  really  perjury. 
But  quite  recently  a  new  plan  has  been  put  into 
operation.  The  passenger  may  now  make  out  his 
declaration  at  leisure  during  the  voyage,  and  hand 
it  to  the  officer  on  arrival  at  port ;  no  oath  is  re- 
quired, each  one  is  left  to  his  honor.  This  will 
relieve  many  from  the  crime  of  perjury,  but  not 
from  the  sin  of  lying. 

Some  people  excuse  their  smuggling  on  the 
ground  that  the  tax  is  too  high,  or  outrageous.  That 
is  rather  a  poor  excuse  in  a  country  where  such 
taxes  are  levied  by  a  representative  body.  The 
honest  way  is  to  obey  the  law  as  it  stands,  and  then 
seek  to  have  a  better  law  enacted  in  its  stead. 

Taxes  levied  on  articles  raised  or  produced  in 
this  country,  such  as  tobacco  and  liquors,  are  termed 
internal-revenue  taxes,  and  are  payable  by  stamps 
affixed  to  the  articles.  These  taxes  also  are  evaded. 
Down  in  the  mountains  of  Tennessee,  Kentucky, 


i8o     EVERY-DAY  BUSINESS   FOR  WOMEN 

West  Virginia,  and  North  Carolina,  the  natives 
manufacture  whiskey  in  secret,  after  primitive 
methods.  They  will  not  pay  the  high  tax,  which 
is  in  the  form  of  a  license,  and  so  their  places  are 
called  "illicit  distilleries,"  and  they  are  ruthlessly 
hunted  down  by  United  States  marshals  accom- 
panied by  armed  men  and  bloodhounds.  As  the 
business  is  conducted  at  night,  to  insure  secrecy, 
the  mountain  distillers  are  called  popularly  "moon- 
shiners." When  a  raid  is  made  on  a  distillery  there 
is  often  a  desperate  struggle,  for  the  men  resist 
arrest,  and  so  it  happens  that  murder  is  sometimes 
committed,  and  some  poor  mountaineer  is  killed  for 
the  crime  that  grew  out  of  evasion  of  taxes. 

Since  the  ^revenue  derived  by  the  government 
from  the  sale  of  public  lands  is  but  an  inconsider- 
able item  in  its  budget,  it  follows  that  smuggling, 
or  cheating  the  government,  is  really  diminishing 
its  revenues;  and  as  it  is  chiefly  by  these  indirect 
taxes  that  the  government  pays  for  our  great  navy 
and  standing  army,  our  public  buildings,  the  great 
irrigation  works  that  are  making  the  desert  blossom, 
the  river  and  harbor  improvements,  the  agricultural 
experiment  stations  whose  work  tends  to  increase 
the  productivity  of  our  farms,  our  scientific  depart- 
ments, the  Post-Office  deficit  rendered  necessary 
in  giving  cheap  postage  over  so  great  an  extent  of 
territory,  the  Panama  Canal  construction,  and  all 


TAXES   AND   CUSTOMS  iSi 

other  public  works;  so  it  will  plainly  appear  that 
the  colossal  selfishness  of  those  who  defraud  the 
government  retards  and  diminishes  the  public  bene- 
fits which  all  would  enjoy  from  a  wise  expenditure 
of  abundant  revenues. 

The  taxes  levied  by  the  different  states  vary  with 
the  state  and  its  necessities.  Some  states  levy  an 
income  tax;  the  imposition  of  a  tax  of  this  sort  by 
the  government  was  declared  unconstitutional  in 
1894  An  inheritance  tax  is  levied  in  some  states 
upon  property  transferred  by  will,  or  inherited  un- 
der the  law.  The  New  York  law  taxes  an  estate  of 
over  five  hundred  and  less  than  ten  thousand  dol- 
lars, at  "  five  per  centum  of  its  clear  market  value," 
if  it  has  been  left  to  nieces  or  nephews  or  strangers, 
with  some  exceptions.  An  estate  which  is  trans- 
ferred by  will  or  by  direct  inheritance  to  father, 
mother,  husband  or  wife,  child,  brother,  sister, 
wife  or  widow  of  a  son,  or  husband  of  a  daughter, 
or  a  legally  adopted  child,  is  not  taxed  if  its  value 
is  less  than  ten  thousand  dollars  ;  over  that  amount 
the  tax  is  one  per  cent ;  but  even  one  per  cent  of 
twenty  millions  is  two  hundred  thousand  dollars 
for  the  state's  coffers.  The  theory  on  which  this 
tax  is  levied  is  that  the  owner  of  the  riches  was 
enabled  to  accumulate  them  because  of  the  good 
government  of  the  state  :  and,  therefore,  at  his 
death  this  silent  cooperation  should  be  recognized 


i82     EVERY-DAY  BUSINESS   FOR  WOMEN 

by  a  partner's  percentage  for  the  state.  Its  aim  is 
also  to  assist  in  breaking  up  vast  estates,  so  that 
immense  wealth  may  not  be  concentrated  in  single 
hands. 

Some  states  also  tax  corporations  within  their 
limits ;  and  also  mortgages,  bank  stock,  chattels, 
machinery,  and  even  the  professions.  Sometimes 
the  state  levies  a  tax  for  the  use  of  the  land  upon 
each  individual  holder  of  it,  thus  asserting  its  sov- 
ereignty. 

County  taxes  are  levied  upon  the  land,  and  also 
upon  various  occupations,  sometimes  upon  stocks 
and  bonds  as  well.  There  is  a  road  tax  levied  by 
counties  for  the  keeping  of  the  public  roads  in  or- 
der. In  many  parts  of  this  country,  this  is  payable 
in  money  or  so  many  days*  labor  on  the  road,  ac- 
cording to  the  man's  tax,  a  day's  labor  of  one  man 
counting  for  one  dollar  and  a  quarter ;  the  labor  of 
a  man  and  one  horse  counts  for  more,  and  for  a  man 
with  a  team  of  horses  the  allowance  is  still  greater. 
The  custom  of  working  out  a  road  tax  dates  from 
the  time  when  money  was  scarce  and  labor  plenti- 
ful. It  has  not  conduced  to  good  roads,  for  the  work 
has  seldom  been  honestly  or  intelligently  done ;  and 
there  is  now  a  very  general  movement  to  insist 
upon  the  payment  of  the  tax  in  money,  and  have 
roads  repaired  under  competent  supervision. 

City  taxes  are  levied  upon  individuals  holding 


TAXES   AND   CUSTOMS  183 

property  within  its  limits,  upon  real  and  personal 
property.  Court  decisions  have  been  made  in  New 
York  State  that  declare  the  foundations,  columns, 
and  superstructure  of  elevated  roads  to  be  taxable 
as  real  estate  ;  and  the  right  of  a  company  to  draw 
water  from  the  Niagara  River  at  the  Falls  is  likewise 
held  to  be  realty,  and  therefore  taxable.  There  is 
also  a  tax  for  water  where  the  city  owns  the  plant. 
The  penalty  for  failure  to  pay  the  water-rent  is  the 
shutting-off  of  the  water.  When  the  other  taxes  are 
unpaid,  the  property  is  advertised  for  sale  for  a 
month,  and  then  the  sheriff  levies  on  it,  and  sells  it 
for  taxes  ;  a  man  may  buy  back  his  property  within 
a  year  by  paying  the  taxes  on  it,  plus  the  costs  of 
advertising  and  sale,  and  the  interest  on  the  debt. 
His  right  to  do  this  is  called  his  "  equity  of  redemp- 
tion." This  is  the  usual  procedure,  but  the  practice 
varies  in  different  states.  In  some  places  a  man 
may  acquire  good  title  to  any  property  by  living  on 
it  ten  years  and  paying  taxes  for  it.  Absent  owners 
frequently  lose  property  by  the  operation  of  this 
"law  of  adverse  occupancy." 

Under  the  head  of  taxes  levied  by  a  city  come 
the  assessments  made  upon  property-holders  when 
a  street  is  asphalted  or  other  improvement  under- 
taken ;  the  city  holding  that  the  improvement  has 
benefited  the  property  on  that  street  and,  therefore, 
the  beneficiary  or  owner  should  pay  for  it.   This 


i84    EVERY-DAY  BUSINESS   FOR  WOMEN 

tax  is  always  grumbled  at,  for  some  owners  always 
object  to  improvements. 

Taxes  are  levied  either  according  to  the  sworn 
returns  which  the  taxpayers  make  of  the  value  of 
their  individual  property  holdings,  or  according  to 
the  valuation  of  the  taxable  property  made  by  a 
board  of  assessors.  These  men  are  supposed  to  be 
thoroughly  familiar  with  the  values  of  different  lo- 
cations, and  to  make  an  honest  appraisement.  The 
city  authorities  establish  the  rate  of  the  tax,  ac- 
cording to  the  city's  financial  needs,  and  after  the 
valuations  are  returned  by  the  board  the  individual 
tax-bills  are  made  out.  Property-owners  are  usually 
given  a  reasonable  time  in  which  to  object  to  the 
valuation  of  their  property ;  there  are  few  like  Esther 
Gay,  of  Mary  E.  Wilkins's  story,  who  object  to 
having  their  property  valued  too  low,  as  a  matter 
of  pride ;  and  if  an  owner  takes  oath  that  his  pro- 
perty was  overvalued  the  assessment  will  be  re- 
duced. This  is  called  "  swearing  off  taxes,"  and 
is  much  practiced  by  large  property-owners ;  it  is 
often  the  one  way  in  which  a  man  will  perjure  him- 
self. It  thus  happens  that  a  man  who  owns  his 
little  home,  and  only  that,  will  pay  proportionally 
a  larger  tax  than  a  man  who  owns  much  property. 
This  inequality  arises  from  the  fact  either  that  the 
poorer  man  is  more  honest,  or  that  the  difference 
in  the   amount   of  the  tax  would  be  so  trifling 


TAXES   AND   CUSTOMS  185 

that  he  does  not  take  the  trouble  to  swear  any  of 
it  off. 

Another  form  of  tax  is  called  a  poll  tax,  from  the 
old  English  word  for  head,  and  is  a  tax  levied,  gen- 
erally by  the  state,  upon  the  head  of  every  man  who 
is  entitled  to  vote,  with  the  exception  of  the  blind, 
the  crippled,  and  honorably  discharged  soldiers  and 
sailors  (New  Jersey  also  specifies  "paupers,  idiots, 
and  insane  ").  This  tax  is  a  fixed  sum,  usually  only 
a  dollar  or  two,  and  the  uses  to  which  it  is  devoted 
are  various.  Recent  legislation  in  Georgia  enacts 
that  the  proceeds  of  this  tax  shall  be  used  "for  edu- 
cational purposes  in  instructing  children  in  the  ele- 
mentary branches  of  an  English  education  only  "  ; 
in  some  other  states  it  is  turned  into  the  general 
treasury  of  the  places  where  it  is  collected,  and  in 
some  it  is  used  to  defray  the  general  expenses  of 
elections.  In  Georgia  and  in  Vermont,  and  possibly 
in  some  other  states,  a  man  is  not  entitled  to  vote 
unless  his  taxes,  including  this  one,  have  been  paid 
before  he  is  registered  on  the  poll  list.  In  Georgia 
a  large  number  of  voters  own  no  taxable  property ; 
and  as  this  is  consequently  their  only  tax,  it  is  a 
frequent  custom  at  elections  in  such  states  for  the 
political  party  which  desires  the  vote  to  pay  the  tax 
for  the  voter.  This  tax  is  not  levied  in  all  states ; 
but  it  is  a  very  old  form  of  tax,  one  that  runs  back 
to  antiquity :  the  Jews  paid  a  poll  tax  to  the  Temple, 


i86     EVERY-DAY  BUSINESS   FOR  WOMEN 

but  resented  the  imposition  of  a  similar  tax  by 
Rome,  regarding  it  as  a  badge  of  servitude. 

In  England  a  tithe  (that  is,  a  fixed  percentage  of 
the  income)  is  required  by  law  from  all  property- 
holders,  for  the  support  of  the  Established  Church. 
Non-conformists,  or  members  of  other  denomina- 
tions, object  to  paying  this  on  conscientious  grounds, 
and  will  sometimes  go  to  jail  rather  than  pay  it. 
Their  attitude  recalls  that  of  the  Jews  in  the  times 
just  before  Christ :  Rome  levied  a  land  tax,  and  they 
objected  to  it,  as  they  thought  it  "undermined  the 
doctrine  that  to  the  Lord  alone,  as  the  owner  of  the 
land,  did  they  owe  payment  for  the  blessings  that 
came  to  them  in  the  way  of  fruits  and  harvests."  * 

It  is  difficult  for  us  to  appreciate  the  opprobrium 
in  which  a  tax-gatherer  is  held  in  countries  where 
the  taxes  are  not  collected  by  regularly  appointed 
government  officials,  but  are  "  farmed."  In  the  days 
of  the  old  Roman  Empire  this  was  the  common 
practice  ;  men  bid  against  each  other  for  the  privi- 
lege of  collecting  the  revenues  of  a  province ;  and 
the  man  who  paid  the  ruler  the  highest  sum  re- 
ceived the  award,  or  the  right  to  collect  taxes.  Of 
course  he  had  to  collect  enough  to  reimburse  him- 
self and  make  a  handsome  profit  as  well,  and  this 
led  to  much  extortion.  One  can  understand  the 
amazement  of  the  people  of  Palestine,  when  the 
*  James  S.  Riggs,  History  of  the  Jewish  People, 


TAXES   AND   CUSTOMS  187 

under-collector  of  the  Roman  farmer,  Matthew  the 
Publican,  was  chosen  as  one  of  the  close  companions 
of  the  Nazarene  Teacher,  who  preached  righteousr 
ness.  In  the  Turkish  Empire  to-day  the  same  sys- 
tem is  in  vogue,  and  is  the  frequent  cause  of  perse- 
cutions, riots,  and  poverty. 

Men  sometimes  resort  to  queer  ways  of  paying 
their  taxes.  Years  ago,  when  land- values  in  Kansas 
City  were  rising  rapidly,  a  young  man  bought  a 
valuable  lot  in  the  heart  of  the  city  to  hold  for  an 
increase  in  value.  Meanwhile  he  had  heavy  taxes 
to  pay  on  it.  So  he  had  it  ploughed  and  planted 
with  corn,  and  from  the  proceeds  of  the  sale  of  the 
crop  paid  his  taxes.  Naturally  his  neighbors  were 
indignant  to  have  a  cornfield  in  the  heart  of  the 
city's  business  section  ;  but  he  serenely  harvested 
his  crops  for  several  years,  until  values  rose  and  he 
could  sell  at  a  handsome  profit. 

At  the  close  of  this  brief  review  of  the  tax  ques- 
tion, let  us  reiterate  a  few  points. 

First :  Taxes  are  necessary  for  the  support  of 
government ;  and  without  government  the  social 
organization  and  the  means  of  acquiring  and  hold- 
ing property  would  be  lost. 

Second :  Taxes  should  be  fairly  levied  upon  a 
justly  assessed  valuation  of  lands,  houses,  personal 
property,  or  imported  goods ;  and  when  so  levied, 
should  be  honestly  paid. 


i88     EVERY-DAY  BUSINESS   FOR   WOMEN 

Third  :  The  man  or  woman  who  smuggles  goods 
through  the  customhouse,  or  dodges  taxes  by 
swearing  them  off  falsely,  or  avoids  revenue  laws 
by  the  illicit  manufacture  of  goods  on  which  a  tax 
is  levied,  is  dishonest.  There  is  no  difference  in 
morals  between  the  cultured  traveler  from  Europe 
who  smuggles  goods  or  falsifies  values,  and  the 
ignorant,  rude,  and  unlettered  mountaineer,  with 
vague  ideas  of  right  and  wrong,  who  makes  corn 
whiskey  in  a  mountain  cave. 


CHAPTER  XV 

THE  USE  AND  TRANSFERENCE  OF  PROPERTY 

Property  is  the  thing  we  possess,  and  is  usually 
classed  as  real  or  personal.  Personal  property  in- 
cludes clothing,  jewels,  furniture,  stocks  and  bonds, 
horses  and  other  live  stock,  crops,  wines,  mined 
coal  or  minerals,  and  manufactured  goods ;  in  short, 
all  possessions  that  are  in  their  nature  movable. 
Real  property  consists  of  those  forms  of  wealth 
which  are  more  stable  in  their  situation,  such  as 
houses  and  lands,  and  is  commonly,  but  incorrectly, 
classed  as  "  real  estate." 

Now  property  figures  in  business  transactions  in 
three  ways :  it  is  bought  or  sold,  mortgaged,  and 
leased  ;  and  we  shall  consider  it  under  these  three 
heads,  dealing  first  with  transactions  in  realty. 

It  is  always  easier  to  buy  than  to  sell  real  es- 
tate, and  this  is  especially  true  if  there  is  a  pressing 
necessity  for  the  owner  to  sell,  such  as  the  closing 
of  an  estate,  or  contemplated  removal  to  a  distant 
location  ;  and  the  price  realized  from  such  sales  is 
usually  exceedingly  low.  After  a  buyer  has  been 
found  for  the  property  there  are  many  formalities 
to  be  observed. 


I90     EVERY-DAY  BUSINESS   FOR  WOMEN 

It  was  the  custom  in  feudal  England,  when  land 
was  transferred,  for  the  old  owner  to  give  to  the 
new  one  a  clod  of  the  earth,  taken  from  the  land, 
and  bestowed  in  the  presence  of  witnessing  neigh- 
bors :  this  was  called  "  the  livery  of  seizin,"  or  tak- 
ing possession.  When  William  the  Conqueror  landed 
on  English  soil  he  stumbled  and  fell ;  but  promptly- 
seizing  a  handful  of  the  sand  he  shouted,  "  I  have 
taken  seizin  of  this  land  of  England,"  and  so  turned 
an  omen  of  disaster  into  a  prophecy  of  success  by 
the  assertion  of  legal  possession. 

Nowadays  when  a  man  buys  property  he  receives 
from  the  seller,  at  the  time  of  payment,  a  deed  of 
the  property  :  this  is  a  written  document  which 
recites  the  fact  that  the  owner  conveys  to  the 
buyer  a  certain  therein  described  property  for  a 
certain  consideration,  sometimes  mentioned,  some- 
times stated  as  "  one  dollar  and  other  considera- 
tions." 

The  transferring  of  real  estate  is  usually  done 
through  the  medium  of  men  known  as  real-estate 
agents,  who  make  it  their  business  to  hunt  up  buy- 
ers for  property,  or  property  for  buyers,  and  who 
receive  for  their  labor  a  commission  on  the  sale. 
When  buyer  and  seller  have  found  each  other,  a 
lawyer  is  usually  employed  to  draw  up  the  deed. 
There  is  usually  a  preliminary  agreement  to  com- 
plete the  sale  in  so  many  days,  signed  by  both  par* 


USE  AND  TRANSFERENCE  OF  PROPERTY   191 

ties,  and  made  binding  by  the  deposit  of  a  small 
sum  by  the  purchaser. 

During  this  interval  the  intending  buyer  should 
have  a  lawyer  or  a  title-insurance  company  "  run 
down  the  title" ;  that  is,  search  the  records  to  as- 
certain that  the  man  who  is  selling  the  property 
is  legally  entitled  to  do  so.  Sometimes  there  is 
found  what  is  called  "  a  flaw "  in  the  title ;  this 
means  that  somewhere  in  the  chain  of  deeds  from 
the  first  to  the  present  holder,  somebody  did  not 
have  perfect  title.  If  any  such  flaw  is  found  and 
the  purchaser  wishes  to  withdraw  from  the  sale, 
he  may  do  so,  and  receive  back  his  deposit.  If  the 
owner,  after  signing  the  agreement  to  sell,  decides 
not  to  do  so,  and  has  no  good  reason  for  his  refusal, 
he  can  be  forced  to  complete  the  sale  or  be  sued 
for  a  breach  of  contract.  If  the  buyer  changes  his 
mind  and  declines  to  complete  the  sale,  although 
the  title  is  good,  he  forfeits  his  deposit,  be  it  two 
hundred  or  two  thousand  dollars.  When  the  con- 
ditions have  been  found  to  be  satisfactory  to  both 
parties,  the  deed  is  passed  to  the  buyer  upon  the 
payment  of  the  agreed  price,  and  by  him  or  his 
agent  taken  to  be  immediately  recorded  at  the 
proper  office. 

Let  us  consider  the  essentials  of  a  deed  that  will 
give  perfect  title  to  property.  It  must  contain  the 
names  of  the  seller  and  the  buyer,  called  respec- 


192     EVERY-DAY  BUSINESS   FOR  WOMEN 

tively  the  parties  of  the  first  and  second  part ; 
these  parties  must  be  legally  competent  to  contract, 
that  is,  must  be  sane  and  of  full  age ;  for  if  an  in- 
sane person  should  sign  a  deed  it  would  invalidate 
the  title,  and  if  a  minor  should  convey  his  property 
the  title  v^^ould  not  be  safe,  because  he  could  repu- 
diate it  when  he  came  of  age ;  or  if  the  guardian  of 
an  insane  person  should  convey  his  ward's  property, 
and  the  court  that  gave  him  permission  to  sell  had 
no  jurisdiction  in  the  matter,  the  title  would  be 
"clouded,"  and  not  quite  perfect.  The  seller  must 
show  that  his  right  in  the  property  is  still  good ;  for 
if  he  is  an  absentee  owner  and  others  have  tres- 
passed on  his  land,  that  is,  have  not  observed  his 
boundaries,  the  law  in  some  states  will  give  the  land 
to  the  trespasser,  if  the  owner  has  "slumbered  on 
his  rights"  and  allowed  the  trespasser  to  remain 
undisturbed  for  fifteen  years ;  the  right  of  owner- 
ship must  be  frequently  asserted  or  others  will  ac- 
quire title  by  "adverse  occupancy." 

The  third  requirement  is  that  the  deed  must  ac- 
curately describe  the  property,  to  avoid  mistakes. 
How  are  boundaries  described  in  deeds  ?  In  modern 
cities  the  lots  are  regularly  laid  off,  and  the  plots 
registered  in  the  assessor's  or  surveyor's  office,  so 
that  the  deeds  recite  only  the  numbers  of  the  section 
and  of  the  lot  that  is  sold.  In  the  newer  states  where 
the  government  Coast  and  Geodetic  Survey  has  laid 


USE  AND  TRANSFERENCE  OF  PROPERTY  193 

off  the  land  in  squares  running  parallel  with  the 
latitude  and  longitude,  the  description  is  based  upon 
these  facts,  and  is  given  in  feet  and  inches.  But  in 
the  older  states  and  towns  the  land  is  measured  by- 
surveyor's  rods  and  chains  and  follows  the  direc- 
tions of  the  compass,  so  that  a  description  would 
read  after  this  fashion  :  The  line  runs  285  rods  and 
25  chains  north,  from  a  sweet-gum  tree  at  the  south- 
west corner  of  William  Walthour's  land,  to  a  yel- 
low pine  tree  on  the  edge  of  the  swamp ;  thence 
300  rods  in  a  westerly  direction  to  a  cedar  post; 
thence  285  rods  and  25  chains  in  a  southerly  direc- 
tion to  a  stone  at  the  southeast  corner  of  James 
Bacon's  land  ;  thence  300  rods  east  to  the  starting- 
point. 

Under  the  cedar  post  and  the  stone,  or  whatever 
marks  the  boundary,  in  Canada,  Virginia,  and  Ver- 
mont, and  perhaps  in  some  other  states,  one  finds 
broken  crockery  buried;  this  was  the  old  English 
custom,  and  it  has  survived  in  the  above-named 
places  ;  to  remove  a  boundary-stone,  in  the  old 
countries,  was  equivalent  to  stealing  a  portion  of  a 
man's  land. 

How  much  does  a  man  buy  when  he  purchases 
land  ?  The  old  law  phrase  reads  that  "  the  land  ex- 
tends from  the  centre  of  the  earth  to  the  highest 
heavens " ;  the  phrase  antedates  sky-scrapers,  and 
includes  crops  and  mines  or  oil-wells,  or  whatever 


194     EVERY-DAY  BUSINESS   FOR  WOMEN 

is  fixed  upon  or  in  the  earth,  unless  it  is  specifically 
excepted. 

But  to  return  to  the  deed.  No  words  must  be  erased 
or  interlined,  nor  any  alterations  made,  after  sign- 
ing the  deed ;  and  if  such  changes  are  made  before 
signing,  the  fact  should  be  stated  in  the  document. 
It  must  be  signed  by  the  seller  or  grantor,  and  if  he 
is  a  married  man  his  wife  must  also  sign  the  paper ; 
or  if  the  seller  be  a  married  woman,  it  is  requisite 
in  most  states  that  her  husband  shall  sign  the  deed. 
The  signatures  should  be  followed  by  the  letters 
L.  S.,  legal  seal,  or  have  such  a  seal  affixed,  as  the 
statute  may  require ;  and  should  be  acknowledged 
before  a  notary  public  or  other  magistrate. 

It  is  not  necessary  that  the  deed  bear  a  date  ;  its 
date  is  the  time  it  was  delivered  to  the  buyer  or 
grantee. 

Deeds  are  of  two  sorts :  warranty  deeds  and  quit- 
claim deeds.  In  a  warranty  deed  the  grantor  pledges 
himself  and  his  heirs  and  assigns  "to  forever  war- 
rant and  defend"  the  title  against  all  persons,  or 
words  of  like  import ;  consequently,  if  a  flaw  in  a 
title-chain  is  found  by  a  later  searcher,  even  fifty 
years  afterwards,  each  seller  who  has  given  a  war- 
ranty deed  can  in  turn  be  sued  by  each  buyer  for 
the  damage  he  has  suffered  by  the  insecure  title. 

The  quitclaim  deed  does  not  bind  the  grantor  to 
warrant  the  title  against  previous  defects ;  it  simply 


USE  AND  TRANSFERENCE  OF  PROPERTY  195 

relinquishes  any  claim  he  may  have  in  the  property. 
In  most  New  England  states  this  is  a  sufficient  deed, 
even  for  the  transfer  of  valuable  property.  Under 
such  a  deed  the  grantor  cannot  be  held  responsible 
for  any  flaw  in  the  title  that  may  be  subsequently 
discovered,  unless  caused  by  his  own  act. 

As  soon  as  a  deed  has  been  duly  acknowledged 
and  delivered,  it  should  be  taken  to  the  recording 
officer,  that  it  maybe  entered  on  the  county  records. 
A  title  is  insecure  to  a  man's  heirs  unless  the  deed 
has  been  recorded  ;  and  the  creditors  of  the  grantor 
may  seize  on  property  after  a  sale  which  the  buyer 
has  failed  to  have  recorded.  The  recording  of  a 
deed  is  a  financial,  though  not  a  legal  necessity. 
When  the  record  has  been  made,  the  deed  is  returned 
to  the  owner,  bearing  the  number  and  page  of  the 
volume  in  which  it  has  been  copied.  Deeds  should 
be  carefully  preserved,  for  courthouses  sometimes 
burn  down,  and  the  records  are  thus  destroyed  ;  but 
the  deed  with  its  evidence  of  record  would  hold  the 
property  for  the  owner. 

Every  time  property  is  sold,  a  new  deed  is  re- 
quired ;  the  old  one  cannot  be  transferred  by  sim- 
ply indorsing  it,  as  one  would  pass  on  a  note  or 
check ;  although  this  has  been  done  between  busi- 
ness men  who  should  have  known  better.* 

Houses  are  sometimes  bought  on  a  plan  of  partial 

*  Cited  by  Mary  A.  Greene  in  Womati's  Manual  of  Law* 


196     EVERY-DAY  BUSINESS   FOR  WOMEN 

payments.  Building  and  loan  associations  are  formed 
to  facilitate  such  purchases,  and  make  it  easy  for  a 
man  of  small  means  to  own  his  own  home.  The  as- 
sociation will  lend  the  man  money  to  buy  or  build 
his  home,  and  allow  him  to  pay  for  it  by  monthly 
payments,  which  usually  average  a  little  more  than 
he  would  have  paid  for  rent.  He  is  charged  on  the 
association's  books  with  interest  on  the  amount 
loaned,  and  is  credited  with  the  amounts  paid ;  so 
that  every  year  his  debt  grows  smaller.  During  this 
time  he  must  pay  taxes  and  assessments  and  keep 
his  property  in  repair.  The  deed  is  not  given  to  him 
until  the  property  is  entirely  paid  for,  so  that  he 
does  not  really  own  it  until  that  time. 

This  me'thod  commends  itself  to  thrifty  men ;  for 
after  renting  a  house  for  years  a  man  has  nothing 
to  show  for  his  rent-money  ;  while  by  this  method 
his  rent-payments  actually  purchase  his  house.  If 
for  any  reason  the  payments  are  stopped,  after  a 
certain  time  the  association  takes  possession  of  the 
house,  and  the  man  loses  his  investment.  Socio- 
logical investigations  show  that  many  of  the  chil- 
dren of  the  poor  go  to  work  at  a  very  early  age  in 
order  to  help  the  parents  buy  the  home  ;  this  is 
especially  true  of  factory  laborers.  The  prelimina- 
ries of  such  a  sale  include  those  of  a  cash  purchase, 
and  the  additional  contract  with  the  building  asso- 
ciation arranging  for  the  payments. 


USE  AND  TRANSFERENCE  OF  PROPERTY  197 

The  buying  and  selling  of  personal  property  is 
attended  with  less  formality.  In  order  properly  to 
secure  a  sale  of  property  whose  value  ranges  from 
thirty  to  three  hundred  dollars,  a  memorandum  of 
its  terms  should  be  made,  or  a  part  payment  given 
which  binds  the  bargain ;  such  a  payment  is  some- 
times called  an  earnest.  A  price  in  money  is  one  of 
the  essentials  of  a  sale  of  personal  property  ;  a  price 
in  terms  of  other  goods  is  not  a  sale,  but  barter. 
There  are  some  cautions  to  be  observed  in  buying 
personal  property. 

First :  Property  should  be  taken  into  possession 
as  soon  as  possible  after  it  has  been  paid  for ;  and 
this,  not  because  one  doubts  the  trader's  honesty, 
but  to  perfect  title.  A  sale  is  complete  when  the 
goods  are  ready  to  be  delivered  to  the  buyer ;  if  they 
are  boots,  or  soaps,  or  things  that  do  not  have  to  be 
prepared,  they  become  the  buyer's  as  soon  as  paid 
for ;  and  if  they  are  burned  in  the  shop  before  de- 
livery, the  loss  falls  upon  the  buyer.  Or  if  the  goods 
have  been  left  for  delivery  for  several  days,  and 
during  that  interval  the  merchant  fails,  his  creditors 
can  seize  the  goods  and  the  buyer  would  be  the 
loser.  One  takes  this  risk  sometimes  at  the  holi- 
day season,  but  it  is  an  unwise  thing  to  do.  Goods 
bought  on  credit  of  course  are  not  really  ours  until 
paid  for  ;  and  if  an  article  which  has  been  bought  at 
a  store  and  charged,  and  left  for  delivery,  is  sold 


198     EVERY-DAY  BUSINESS   FOR  WOMEN 

again  by  the  dealer  in  the  mean  time,  the  buyer  on 
credit  has  no  redress. 

We  have  said  that  title  passes  when  goods  are 
ready  for  delivery ;  but  if  they  must  be  weighed, 
measured,  or  altered,  before  they  are  in  the  pro- 
portions or  condition  which  the  purchaser  desires, 
he  does  not  own  them  until  these  changes  have  been 
made ;  and  if  a  fire  should  occur  before  the  goods 
were  ready  for  delivery  the  purchaser  could  recover 
the  money  paid  for  them.  If  a  man  had  ordered 
a  pair  of  boots  from  a  shoemaker,  and  had  paid 
nothing,  nor  signed  a  memorandum  of  sale,  the 
maker  could  not  recover  the  price  if  the  buyer 
should  die  before  the  goods  were  delivered. 

There  is  one  form  of  buying  which  is  increasing 
in  popularity,  and  which,  apart  from  its  moral  aspect 
as  an  encourager  of  extravagance,  is  also  most  un- 
safe. This  is  the  so-called  installment  plan,  whereby 
a  large  quantity  of  goods  may  be  purchased  for 
small  weekly  or  monthly  payments  ;  often  the  rate 
is  a  payment  of  one  dollar  weekly  for  every  hundred 
dollars*  worth  purchased.  Diamonds,  pianos,  cloth- 
ing, furniture,  books,  —  almost  everything  may  be 
so  purchased ;  and  wage-earners  are  tempted  into 
great  extravagances  by  these  alluring  offers.  Under 
this  specious  system,  young  people  furnish  their 
houses  much  more  handsomely  than  they  can  afford ; 
the  small  grocer's  clerk  indulges  in  a  gold  watch,  and 


USE  AND  TRANSFERENCE  OF  PROPERTY   199 

the  broker's  clerk,  in  a  diamond  pin  ;  and  then  they 
spend  their  energies  keeping  up  the  installments. 

The  "  credit  houses,"  which  sell  furniture  and 
everything  else  on  the  installment  plan,  amply  pro- 
tect  themselves.  The  purchaser  agrees  to  pay  s( 
much  a  month  or  a  week,  as  the  case  may  be,  and 
gives  the  dealer  a  chattel  mortgage  under  the  terms 
of  which  the  goods  revert  to  the  dealer  if  at  any 
time  the  installment  is  not  forthcoming.  The  seller 
may  take  the  goods,  even  though  the  purchaser  has 
paid  ninety  per  cent  of  the  agreed  price;  the  law 
holding  that  the  money  paid  is  only  the  seller's  com- 
pensation for  damage  to  goods  and  interest  on  his 
capital  involved.  The  price  asked  is  always  larger 
than  a  cash  price  would  be,  for  it  must  cover  the  in- 
terest on  the  r^oney  represented  by  the  goods  the 
seller  has  delivered. 

It  often  happens  that  this  system,  besides  con- 
ducing to  extravagance,  leads  to  actual  misery ;  for 
the  poor  woman  who  has  paid  eleven  twelfths  of  the 
installments  on  her  sewing-machine,  may  be  unable 
because  of  illness  to  meet  her  final  payment,  and  so 
loses  the  machine  by  which  she  was  earning  her 
living.  People  who  buy  thus  are  gambling,  and 
health  and  tenure  of  position  are  the  cards. 

It  is  noticeable  that  groceries  and  fuel  are  not 
sold  on  this  plan,  for  once  consumed  there  would 
be  no  goods  for  the  dealer  to  recover.  It  is  a  fact 


200     EVERY-DAY  BUSINESS  FOR  WOMEN 

that  many  of  the  so-called  "  misfit  clothing  "  stores 
and  carpet  stores  secure  their  stocks  from  goods 
claimed  because  the  installments  have  not  been 
paid.  "  It 's  an  ill  wind  that  blows  nobody  any 
good,"  and  in  this  case  one  man's  misfortune  is 
another  man's  profit. 

A  mortgage  is  a  deed  whereby  title  to  property 
is  given  conditionally.  It  is  the  security  given  to 
the  lender  for  money  loaned ;  and  the  property  will 
become  his  if  the  borrower  fails  to  pay  the  amount 
loaned  and  the  interest  when  due. 

Suppose  a  man  owns  a  farm,  but  has  no  money 
for  stock  and  implements ;  he  borrows  the  neces- 
sary amount,  and  gives  a  mortgage  on  his  land  as 
security.  Suppose  he  has  a  succession  of  bad  crops, 
so  that  he  cannot  pay  the  interest  or  the  principal. 
In  that  case  the  owner  of  the  mortgage  sues  him  in 
court  and  forecloses  the  mortgage,  and  then  sells 
the  property ;  if  the  amount  received  is  over  the 
amount  due,  the  surplus  is  given  to  the  owner ;  but 
if  it  is  less,  then  he  must  make  up  the  deficiency. 
The  property  must  be  sold  at  auction  after  due 
advertisement. 

The  form  of  the  mortgage  and  the  procedure  for 
foreclosing  differ  in  different  states  ;  in  all,  however, 
there  is  a  deed  signed  and  a  promissory  note  for 
the  exact  amount  given.  In  some  states,  as  in  the 
District  of  Columbia,  the  document  is  called  a  deed 


USE  AND  TRANSFERENCE  OF  PROPERTY  201 

of  trusty  because  the  property  is  deeded  to  a  third 
party,  called  a  trustee,  to  be  held  until  the  note  is 
paid;  and  carries  with  it  a  provision  enabling  the 
trustee  to  foreclose  upon  non-payment  of  interest, 
without  recourse  to  the  courts. 

When  a  mortgage  is  paid,  the  note  is  canceled, 
and  the  mortgage  returned  to  the  mortgagor,  with 
a  document  called  a  release ;  sometimes  the  release 
is  written  on  the  same  document  as  the  mortgage, 
sometimes  it  is  a  separate  instrument.  Both  mort- 
gage and  release  should  be  promptly  recorded. 

Sometimes  a  man  places  two  mortgages  on  his 
property,  each  mortgagee  believing  that  he  has  the 
only  mortgage.  In  the  case  of  such  knavery  the 
mortgage  first  recorded  would  be  the  first  mort- 
gage, and  enjoy  its  privileges,  while  the  other  one 
recorded  would  be  regarded  as  the  second,  even 
though  it  bore  a  prior  date. 

A  second  mortgage  is  very  undesirable,  because 
the  property  can  be  sold  by  the  holder  of  the  first 
mortgage,  and  the  second  man  may  have  to  buy 
the  property  to  protect  his  claim.  Consequently  it 
is  plain  that  the  same  care  needs  to  be  exercised 
with  mortgages  as  with  other  deeds.  In  accepting 
a  mortgage  one  should  note  that  it  fully  and  accu- 
rately describes  the  property ;  that  it  was  not  exe- 
cuted by  a  bankrupt,  in  which  case  there  would  be 
no  security  for  the  loan;  that  the  wife  signs  the 


202     EVERY-DAY  BUSINESS   FOR  WOMEN 

deed  with  her  husband,  and  that  she  is  of  full  legal 
age  to  do  so  ;  and  that  the  property  is  clear,  and  has 
no  builder's  or  mechanic's  lien  against  it,  no  court 
judgment  for  debt,  nor  any  prior  mortgage ;  it  should 
then  be  promptly  and  properly  recorded.  Title 
should  be  searched  for  a  mortgage  as  carefully  as 
for  a  warranty  deed. 

Mortgages  are  given  on  all  classes  of  property ; 
sometimes  they  are  given  on  furniture  or  personal 
property,  in  which  case  they  are  called  "chattel 
mortgages  ";  these  are  recorded  like  other  mort- 
gages, but  the  process  of  foreclosure  is  simpler. 

The  word  mortgage  is  derived  from  the  old 
French,  meaning  a  dead  pledge^  and  is  employed 
because  the  "  estate  so  put  in  pledge  shall  continue 
to  the  lender  as  dead  or  gone  from  the  mortagor  " 
(Bouvier).  Unless  specifically  provided  in  the  in- 
strument, as  the  written  statement  is  called,  the 
property  mortgaged  cannot  be  sold  until  the  court 
has  ordered  the  mortgage  foreclosed ;  but  until  the 
"  rule  absolute  "  has  been  made  by  the  court,  the 
owner  may  redeem  his  property  by  paying  the  prin- 
cipal and  interest  of  the  debt ;  after  the  issuance  of 
that  rule  the  property  is  sold. 

Mortgages  are  favorite  forms  of  investment  with 
corporations  and  some  individuals ;  but  there  is 
often  so  much  misfortune  and  personal  hardship 
connected  with  their  issuing,  that  tender-hearted 


USE  AND  TRANSFERENCE  OF  PROPERTY  203 

people  hesitate  to  invest  in  them,  that  they  may 
avoid  the  infliction  of  pain  if  foreclosure  becomes 
necessary.  It  is  so  often  the  widow  and  orphans 
who  suffer  from  unpaid  mortgages. 

The  third  way  in  which  property  is  transferred 
is  by  renting  or  leasing.  A  man  surrenders  his 
ownership  in  his  property  to  another  man  for  a 
specified  time,  on  condition  that  he  receive  in  ex- 
change therefor  a  certain  sum  of  money  called  rent. 
Rent  is  simply  a  compensation  for  the  use  of  pro- 
perty, real  or  personal,  which  the  owner  expects  to 
receive  back  again  in  as  good  condition  as  reason- 
able wear  and  tear  will  permit.  Renting  creates 
the  relationship  of  landlord  and  tenant,  or  lessor 
and  lessee.  Most  people  are  more  concerned  with 
renting  than  with  selling  property,  therefore  it  is 
well  for  us  to  be  acquainted  with  the  rights  and 
duties  of  each  party  to  such  a  contract. 

The  longest  term  for  which  a  lease  may  be  given 
is  ninety-nine  years,  and  the  shortest  term  is  usu- 
ally one  year.  Properly  speaking  "  the  lease  is  a 
document  wherein  an  owner  grants  to  another  pos- 
session of  his  property  for  a  limited  period,  under 
agreement  that  some  compensation  in  money  or 
provisions  or  other  rent  shall  be  paid."  The  man 
who  gives  the  lease  is  the  lessor,  the  recipient,  the 
lessee.  Long-term  leases  must  be  in  writing  and  exe- 
cuted like  a  deed.  When  one  rents  a  house  or  store  a 


204    EVERY-DAY  BUSINESS   FOR  WOMEN 

lease  is  made  out,  whose  legal  essentials  are  (i)  that 
it  must  contain  the  names  of  the  landlord  and 
tenant,  (2)  an  accurate  description  of  the  property, 
(3)  that  there  must  be  a  clear  statement  of  the  time 
for  which  it  runs,  and  (4)  that  it  must  be  signed  by 
the  party  of  the  first  part,  the  lessor  or  landlord,  and 
the  party  of  the  second  part,  the  lessee  or  tenant. 

In  order  to  avoid  disagreeable  misunderstandings, 
it  is  well  to  have  some  other  agreements  included 
in  the  lease.  The  parties  should  agree  as  to  which 
of  them  is  to  pay  the  taxes,  make  repairs,  pay  water- 
rates  and  insurance,  and  any  assessments  that  may 
be  made  upon  the  property  by  the  city  for  new 
sewerage,  or  paving,  or  such  things. 

Unless  otherwise  stated  in  the  lease  it  is  the  ten- 
ant's duty  to  make  repairs  ;  but  the  lease  only  re- 
quires him  to  make  an  outlay  sufficient  to  keep  the 
buildings  "wind  and  water  tight."  If  the  tenant 
under  a  certain  lease  is  expected  to  make  the  re- 
pairs, and  the  property  is  damaged  or  destroyed  by 
fire,  he  must  rebuild  and  pay  his  full  rent  also, 
although  he  may  be  out  of  the  use  of  the  property 
while  it  is  being  repaired  or  rebuilt ;  he  should, 
therefore,  be  careful  to  have  some  provision  inserted 
in  the  lease  to  provide  for  this  contingency. 

If,  however,  the  landlord  has  agreed  to  make  the 
repairs,  and  does  not  do  so,  the  tenant  cannot  com- 
pel him  to  keep  his  word  by  refusing  to  pay  the 


USE  AND  TRANSFERENCE  OF  PROPERTY  205 

rent  on  that  account,  nor  will  the  law  justify  him  in 
so  doing.  He  must  sue  or  suffer  in  silence  until  his 
lease  expires.  I  knew  of  a  case  where  a  disobliging 
landlord,  who  was  a  woman,  was  brought  to  terms 
by  the  tenant,  also  a  woman.  The  lease  required  the 
landlord  to  make  repairs ;  the  cellar  was  very  damp 
and  the  furnace  in  bad  order,  but  the  landlord  would 
do  nothing,  and  the  tenant  was  helpless  under  a 
year's  lease.  She  was  a  clever  woman,  however,  and 
finding  the  owner  obdurate,  sent  for  an  inspector 
from  the  Health  Department  to  examine  the  cellar : 
he  promptly  pronounced  it  unsanitary,  and  served 
notice  on  the  owner  to  have  it  put  into  proper  con- 
dition. An  inspector  from  the  insurance  company, 
upon  request,  came  and  examined  the  furnace,  and 
declared  its  condition  endangered  the  building,  and 
might  forfeit  the  owner's  policy  unless  it  was  at 
once  repaired.  The  repairs  were  made. 

Of  course  a  tenant  is  not  justified  in  putting  in  a 
new  range  without  the  landlord's  consent,  or  mak- 
ing other  repairs  which  he  deems  necessary,  and 
charging  them  to  the  landlord  ;  for  such  unauthor- 
ized acts  he  must  bear  the  expense  himself.  A  land- 
lord sometimes  suffers  such  things,  rather  than  lose 
an  otherwise  desirable  tenant,  but  it  is  an  act  of 
grace  on  his  part.  In  some  places  the  gas  company 
requires  the  landlord  to  make  a  cash  deposit  and 
sign  a  paper  assuming  responsibility  for  the  tenant's 


2o6     EVERY-DAY  BUSINESS   FOR  WOMEN 

gas-bills,  before  they  will  turn  the  gas  on  in  the 
house. 

A  provision  is  sometimes  inserted  in  a  lease  for- 
bidding the  sub-letting  of  the  property  :  that  is,  the 
tenant  cannot  rent  the  property  to  some  one  else 
without  the  owner's  consent.  He  may,  however, 
rent  a  part  of  the  house  if  he  chooses,  unless  this 
is  expressly  forbidden.  Sometimes  it  is  stipulated 
in  the  lease  that  the  property  shall  not  be  used  for 
certain  purposes. 

In  renting  apartments  the  same  rules  apply  as 
for  separate  houses ;  in  such  leases  the  stipulation 
is  sometimes  made  that  no  dogs  or  birds  shall  be 
allowed,  or  children.  In  an  apartment  lease  in  Ger- 
many there  is  a  regulation  that  forbids  the  keeping 
of  geese  in  an  apartment :  goose-keeping  is  so  rare 
here  that  nobody  has  thought  to  prohibit  it.  There 
is  no  legal  limit  to  the  restrictions  that  a  landlord 
may  impose,  and  after  a  tenant  has  signed  the  lease 
he  is  bound  to  observe  them.  He  is  also  expected 
to  be  reasonably  careful  about  the  use  of  the  prem- 
ises, and  not  to  damage  wantonly  the  woodwork  or 
floors  or  ceilings  and  walls. 

An  interesting  case  was  decided  in  the  New  York 
courts  last  winter.  A  certain  apartment  house  was 
kept  so  cold  that  a  tenant  refused  to  pay  his  rent, 
claiming  breach  of  contract  on  that  account.  The 
landlord  promptly  sued  for  the  rent.  The  court 


USE  AND  TRANSFERENCE  OF  PROPERTY  207 

decided  that  as  long  as  the  man  occupied  the  apart- 
ment he  must  pay  the  agreed  rent :  but  that,  under 
such  circumstances,  he  might  move  out  of  the  house 
and  the  landlord  could  not  sue  for  breach  of  contract. 

The  following  paragraph  is  taken  from  the  circular 
of  an  apartment  house  in  the  vicinity  of  Chicago, 
and  illustrates  both  sides  of  the  subject.  "  Of  course 
the  owner  must  look  after  his  interests  and  con- 
serve his  investment.  But  he  aims  to  be  reasonable 
and  liberal  in  every  particular,  and  to  give  the  tenant 
the  fullest  value  practicable  for  his  money.  Some 
people,  however,  want  the  earth  with  a  bandbox 
and  silk  hat  thrown  in.  These  he  cannot  hope  to 
satisfy,  though  he  will  do  his  best  to  meet  them." 

A  nice  sense  of  justice  governing  both  landlord 
and  tenant  will  make  the  relationship  a  pleasant 
one  ;  there  is  probably  no  finer  place  for  the  practi- 
cal application  of  the  Golden  Rule ;  for  if  the  tenant 
will  look  at  things  from  the  landlord's  point  of  view, 
and  the  landlord  will  see  the  tenant's  side,  there 
will  be  no  unfairness.  But  when  each  is  trying  to 
get  as  much  as  he  can  from  the  other,  the  relation 
becomes  a  struggle  for  advantage,  with  all  its  at- 
tendant unpleasantness. 

A  tenant  is  at  liberty  usually  to  put  in  handsome 
chandeliers,  or  handsomer  fireplaces,  or  additional 
shelving  ;  and  when  his  lease  expires  he  may  re- 
move them,  provided  he  does  so  before  he  surren* 


2o8     EVERY-DAY  BUSINESS    FOR  WOMEN 

ders  the  property;  the  house  once  surrendered, 
these  things  become  the  property  of  the  owner. 

Leases  usually  provide  that  a  certain  notice  must 
be  given  that  the  lease  will  not  be  renewed.  This 
time  runs  from  three  months'  to  thirty  days'  notice, 
and  must  be  given  by  the  party  desiring  to  be  re- 
leased. Where  houses  are  rented  by  the  month,  this 
notice  is  usually  required  thirty  days  in  advance. 

When  a  tenant  is  behind  with  his  rent  and  the 
landlord  desires  him  to  quit  the  premises,  he  must 
first  demand  his  rent,  and  when  that  is  refused  he 
must  serve  notice  on  him  to  leave.  Sometimes  the 
law  runs  that  the  notice  cannot  take  effect  until 
thirty  days  from  the  date  the  rent  is  due.  It  is 
then  quite  possible  for  a  tenant  to  promise  to  pay, 
and  postpone  it  until  the  middle  of  the  month,  and 
then  decline  to  pay :  the  landlord  must  wait  until 
the  first  of  the  next  month  to  serve  notice,  and  then 
the  delinquent  has  thirty  days.  So  if  on  September 
first  his  August  rent  was  due  the  tenant  could  not 
be  driven  out  until  November  first,  and  would  have 
had  three  months*  rent  free.  Poor  tenants  fre- 
quently take  advantage  of  this,  finding  it  cheaper  to 
move  often  than  to  pay  rent ;  and  as  such  tenants 
rarely  have  much  personal  property  they  get  off 
free.  This  is  the  usage  according  to  common  law, 
but  the  statute  law  of  some  states  makes  other  re- 
quirements. 


USE  AND  TRANSFERENCE  OF  PROPERTY  209 

Sometimes  a  man  refuses  to  leave  when  his  rent 
is  not  paid,  and  then  the  landlord  must  dispossess 
him  :  to  do  this,  he  goes  to  the  house  and  his  men 
set  the  tenant's  household  goods  out  on  the  pave- 
ment. It  is  always  wise  for  a  landlord  to  consult  a 
lawyer  before  doing  this,  because,  if  he  should  omit 
some  legal  technicality,  he  might  be  sued  for  dam- 
ages. Some  heart-rending  scenes  have  occurred  at 
such  times,  and  the  landlord  appears  in  a  very  ugly 
light  when  misfortune  fails  to  move  his  stony  heart, 
and  he  refuses  longer  to  give  free  shelter  to  the  un- 
fortunate tenant 

If  a  man  has  a  lease  for  a  year,  even  though  the 
rent  is  payable  by  the  month,  and  then  vacates  the 
premises  before  his  lease  has  expired,  and  pays  no 
more  rent,  the  landlord  may  attach  his  goods  and 
chattels  for  the  money,  after  suing  out  a  writ  of  at- 
tachment against  him.  In  the  parlance  of  the  real- 
estate  man,  this  is  known  as  "jumping  one's  lease," 
and  is  practiced  by  the  dishonest. 

In  renting  space  in  a  storage  warehouse  it  is  not 
merely  space  that  is  hired,  but  care  of  the  property : 
for  this  reason  storage  companies  make  a  careful 
list  of  the  goods  received  and  their  condition  on 
arrival  at  the  warehouse,  that  no  unjust  claim  for 
damage  may  rest  against  them. 

In  Paris,  where  the  renting  of  furnished  rooms 
has  been  made  a  fine  art,  the  lessor  takes  note  of 


2IO     EVERY-DAY  BUSINESS   FOR  WOMEN 

every  scratch  or  ink-spot  or  defacement,  and  the 
lessee  is  expected  to  pay  damages  for  the  same. 
As  a  matter  of  caution,  therefore,  the  prospective 
tenant  should  note  carefully  every  such  imperfec- 
tion existing  and  point  it  out  to  the  landlord  before 
taking  possession. 

Movable  property  that  is  hired,  whether  it  is 
fancy  costumes  or  furniture,  is  expected  to  be  re- 
turned in  good  condition,  reasonable  wear  and  tear 
excepted ;  and  if  lost  while  in  one's  possession  must 
be  paid  for. 

A  man  who  hires  a  horse  and  buggy  for  a  speci- 
fied drive,  at  a  specified  price,  is  guilty  before  the 
law  if  he  takes  another  and  longer  drive  than  he 
agreed  to  take.  He  has  thereby  acted  as  if  he  owned 
the  property,  has  converted  temporary  possession 
into  permanent;  and  this  injustice  the  law  calls 
conversioHy  and  the  livery  man  so  endamaged  could 
sue  for  the  full  value  of  the  horse  and  carriage. 
Some  young  men  think  this  a  sharp  trick  to  play, 
and  often  try  it  in  the  mountains  ;  it  is  a  pity  the 
livery  men  do  not  oftener  sue  for  the  full  damage. 

So  in  these  three  ways  does  real  property  consti- 
tute wealth :  it  may  be  sold  for  more  than  it  cost,  it 
may  be  rented  for  more  than  its  interest,  it  may  be 
mortgaged  to  raise  funds  for  productive  enterprises. 
A  man  cannot  give  bail  in  court  for  himself  or  friend 
unless  he  has  real  property,  that  may  be  attached 


USE  AND  TRANSFERENCE  OF  PROPERTY  211 

in  case  the  bond  is  forfeited ;  and,  if  unencumbered, 
real  estate  is  esteemed  good  collateral  for  any  loan. 

Fortunes  are  made  by  wise  investments  in  real 
estate  located  in  districts  where  cities  are  growing 
up  rapidly.  The  foundations  of  the  Astor  family's 
fortunes  were  laid  by  their  wise  investments  in 
New  York  City  land,  and  their  rule  never  to  sell 
any  of  it.  With  the  growth  of  New  York  these 
lands  have  increased  enormously  in  value,  and  are 
mostly  leased  for  long  terms.  The  Duke  of  Bedford 
owns  immense  districts  in  London,  leased  long  ago 
on  ninety-nine  year  leases;  and  now  that  these 
leases  are  expiring,  many  of  the  lots  are  in  popu- 
lous parts  of  the  city  and  are  covered  with  build- 
ings, which  of  course  revert  to  him. 

At  Atlantic  City  property  has  been  gained  by 
the  action  of  the  ocean,  which  in  fifteen  years  has 
receded,  leaving  great  stretches  of  beach :  where  a 
man's  title  read  "  to  the  ocean,"  he  can  claim  all 
these  extra  hundred  square  feet ;  but  if  the  property 
was  on  the  ocean  front,  and  was  described  as  so 
many  feet  deep  and  so  many  wide,  the  owner  has 
no  "riparian  rights,"  and  finds  himself  shut  out  from 
the  ocean  front  by  the  ocean's  action.  The  running 
of  a  trolley-line  may  increase  the  value  of  property 
in  a  suburban  district,  but  in  the  choice  residence 
sections  of  a  city  sometimes  it  causes  a  deprecia- 
tion of  values  on  account  of  the  noise.  All  of  these 


212     EVERY-DAY  BUSINESS   FOR  WOMEN 

possibilities  have  to  be  taken  into  account  in  mak- 
ing investments  in  real  property. 

In  renting  property,  the  rent  asked  should  be  suf- 
ficient to  pay  the  taxes  and  repairs,  if  the  landlord 
assumes  these,  and  also  to  yield  a  good  return  on  the 
money  locked  up  in  the  property.  Some  estimate 
this  amount  at  ten  per  cent  of  the  value  of  the  pro- 
perty, and  fix  this  as  the  minimum  rent.  The  same 
causes  that  affect  the  value  of  lands  for  sale  will, 
therefore,  affect  rents. 

There  are  many  conservatives  who  hold  that  land 
investments  are  the  safest,  saying,  "No  matter  what 
happens,  the  land  remains."  Any  one  who  knows 
the  economic  history  of  the  South,  in  the  days  after 
the  war,  will  not  yield  a  very  ready  assent  to  this. 
The  land  remained,  but  so  did  the  taxes  ;  the  houses 
were  there,  but  there  was  no  money  for  repairs, 
no  money  to  work  the  lands  ;  and  many  a  fine  old 
place  went  to  briers  and  thorns  and  rack  and  ruin, 
because  only  the  land  remained. 

Yet  in  spite  of  all  these  contingencies,  a  man 
realizes  his  wealth  best  when  he  can  stand  on  his 
own  territory  and  say,  — 

I  am  monarch  of  all  I  survey, 
My  right  there  is  none  to  dispute. 

In  England  and  on  the  Continent  the  possession 
of  land  carries  with  it  a  certain  amount  of  territorial 


USE  AND  TRANSFERENCE  OF  PROPERTY  213 

importance,  which  it  does  not  here.  The  transfer 
of  property  is  also  attended  with  many  more  for- 
malities and  delays.  Is  it  possible  that  it  was  after 
good  Dr.  Watts  had  been  troubled  over  the  transfer 
of  property  here,  that  he  was  inspired  to  write  the 
hymn,  — 

When  I  can  read  my  title  clear 

To  mansions  in  the  skies, 

I  '11  bid  farewell  to  every  fear, 

And  wipe  my  weeping  eyes. 

Any  one  who  has  ever  touched  real  estate  knows 
the  satisfaction  that  comes,  when,  after  long  search 
and  much  vexation  of  spirit,  he  "  can  read  his  title 
clear  "  ;  and  the  hymn  only  sublimates  that  earthly 
satisfaction. 


CHAPTER  XVI 

STOCKS   AND   BONDS 

One  of  the  chief  disadvantages  about  money  is  that 

it  must  be  cared  for ;  as  the  old  rhyme  declares, — 

They  who  have  money  are  troubled  about  it, 

They  who  have  none  are  troubled  without  it. 

Most  people,  however,  are  quite  willing  to  have  this 
sort  of  trouble  laid  upon  them.  None  the  less  the 
judicious  investment  of  money  demands  care  and 
ability ;  for  more  fortunes  are  made  and  lost  by  in- 
vestments than  are  made  by  work.  The  forms  of 
investment  yielding  revenue  are  mainly  of  two  sorts : 
real  estate  and  personal  property  such  as  horses, 
cattle,  or  other  live  stock ;  or  else  stocks  and  bonds. 
We  have  already  discussed  real  property ;  let  us 
now  examine  these  other  forms  of  investments. 

Stock  is  the  amount  of  capital  with  which  an 
association  or  corporation,  or  even  a  small  partner- 
ship, proposes  to  do  business.  A  company  of  men, 
three  or  more,  want  to  manufacture  something ; 
they  form  a  joint-stock  company,  or  a  corporation, 
according  to  the  statutes  of  the  state,  and  each 
subscribes  for  a  certain  amount  of  stock.  They  need 
one  hundred  thousand  dollars,  say ;  so  they  divide 


STOCKS   AND   BONDS  215 

the  stock  into  one  thousand  shares  at  one  hundred 
dollars  (i^ioo)  each;  and  then  if  a  man  subscribes 
for  fifty  shares  he  pays  five  thousand  dollars.  Some- 
times the  amount  subscribed  for  is  not  all  paid  in 
at  once,  although  according  to  law  it  must  all  be 
subscribed  before  the  company  is  formed.  The 
company  may  need  only  fifty  thousand  dollars  to 
start  business,  so  each  subscriber  pays  only  fifty 
per  cent  of  his  subscription  at  first :  as  more  money 
is  needed,  it  is  called  for  from  the  subscribers  to 
the  stock.  This  method  has  two  advantages :  the 
money  does  not  lie  idle  in  the  company's  hands, 
and  the  subscribers  are  not  inconvenienced  by  hav- 
ing to  pay  it  all  at  once.  It  often  happens  that  only 
eighty  per  cent,  or  less,  of  the  original  subscriptions 
are  called  in  ;  the  profits,  however,  are  divided  every 
year  as  though  the  shares  were  all  paid  up :  these 
divided  profits  are  called  dividends.  So  a  man  who 
has  paid  only  four  thousand  dollars  on  his  five  thou- 
sand dollars'  worth  of  stock  receives  a  dividend  of 
six  or  ten  or  twelve  per  cent  on  five  thousand 
dollars. 

When  a  man  pays  his  installment  on  stock  sub- 
scribed for,  a  certificate  is  issued  to  him,  which 
states  that  John  Doe  has  become  the  owner  of  so 
many  shares  of  stock  in  such  a  company,  shares 
valued  at  one  hundred  or  at  fifty  dollars  a  share. 
Sometimes  the  stipulation   is  added   that    these 


2i6     EVERY-DAY  BUSINESS   FOR  WOMEN 

shares  are  not  transferable  unless  such  transfer  is 
registered  at  the  company's  office. 

Stock-issuing  companies  may  be  of  two  kinds : 
joint-stock  companies  and  corporations. 

Joint-stock  companies  are  really  partnerships, 
and  every  stockholder  is  a  member  of  the  firm,  and 
liable  for  all  the  debts  of  the  concern ;  although 
the  managers  are  really  the  only  ones  who  can  do 
business  for  the  company,  that  is,  can  buy  and  sell, 
or  make  contracts  for  the  firm.  Because  of  the  re- 
sponsibility of  stockholders  for  debts  incurred  by 
the  management,  this  form  is  not  often  used  for 
companies. 

"  A  corporation,"  according  to  the  definition  of 
Chief  Justice  John  Marshall  in  1819,  "is  an  arti- 
ficial being,  indivisible,  intangible,  and  existing 
only  in  contemplation  of  law."  Yet  when  a  body 
of  people  have  combined  their  capital,  and,  having 
fulfilled  all  the  legal  requirements,  request  the 
state  to  incorporate  them,  the  corporation  so  formed 
becomes,  in  the  words  of  another  lawyer,  "  a  citizen 
of  the  state  which  chartered  it  and  thus  imparted 
to  it  the  breath  of  life ;  it  may  take,  hold,  and 
transfer  property ;  it  may  enter  into  contracts ;  it 
can  commit  civil  wrongs ;  it  can  even  be  guilty  of 
criminal  offenses  for  which  it  may  be  indicted  and 
punished;  it  has  legal  immortality."^  Partners 
^  Francis  M.  Burdick,  Essentials  of  Business  Law, 


STOCKS   AND   BONDS  217 

die,  and  the  partnership  is  thereby  dissolved ;  but 
corporations  have  a  continued  existence  so  long  as 
their  capacity  for  making  money  is  unimpaired,  and 
often  longer. 

Stockholders  in  a  corporation  are  not  responsible 
for  the  debts  of  the  corporation,  and  in  case  of  the 
failure  of  the  company,  they  lose  only  their  invest- 
ment in  stock.  In  a  joint-stock  company  their  per- 
sonal estates  are  liable  for  all  debts  of  the  com- 
pany. 

The  stockholders  manage  the  business  by  elect- 
ing executive  officers,  who  are  supposed  to  carry 
out  the  policy  agreed  upon  by  the  stockholders. 
Too  often  the  stockholders  are  mere  figure-heads, 
and  sign  over  their  right  to  vote  to  some  one  else  ; 
that  is,  they  make  him  their  proxy  and  give  him 
power  to  vote  for  them.  The  party  in  power  usually 
tries  to  secure  as  many  proxies  as  possible,  in  order 
to  hold  a  controlling  number  of  votes  at  an  elec- 
tion. The  executive  managers  are,  however,  the 
only  ones  who  can  legally  transact  the  company's 
business.  It  is  an  adage  that  "corporations  have 
no  souls,"  and  this  expresses  the  true  fact  that 
officers  of  a  company  will  be  harsher  and  more 
unscrupulous  in  their  methods  when  doing  busi- 
ness for  a  corporation  than  they  will  when  trans- 
acting it  for  themselves  as  individuals. 

Stocks  may  be  of  two  kinds,  preferred  and  com- 


2i8     EVERY-DAY  BUSINESS   FOR  WOMEN 

mon.  On  preferred  stock  the  company  agrees  to 
pay  a  fixed  rate  of  interest  out  of  its  earnings,  be- 
fore any  dividends  are  paid  on  common  stock.  Com- 
mon stock,  therefore,  receives  only  the  dividends 
which  the  directors  may  choose  to  declare.  Thi{ 
fact  usually  gives  preferred  stock  a  higher  market 
value  than  the  common  stock  reaches. 

There  are  two  forms  of  cheating  the  public  in 
stocks.  A  company  may  be  overcapitalized^  as  the 
big  Steel  Trust  was ;  that  is  to  say,  its  capital 
stock  may  consist  of  one  million  dollars,  according 
to  the  prospectus,  but  of  this  amount  the  organiz- 
ers, or  those  in  **the  ring,"  may  take  half  for  them- 
selves, without  paying  for  it,  and  offer  the  rest  for 
sale  in  the  market ;  from  the  sale  of  this  portion 
they  obtain  the  capital  necessary  to  do  business. 
But  when  the  dividends  are  declared,  the  profits 
are  divided  equally  between  those  who  paid  for 
their  shares  and  those  who  took  them.  Thus  the 
earning  power  of  a  business  is  double-taxed  to 
meet  the  demand. 

The  other  form  of  dishonesty  is  popularly  known 
as  "  watering  the  stock,"  and  consists  in  issuing  a 
fresh  series  of  stock,  on  a  pretended  necessity  of 
more  money  for  the  business.  Most  of  this  new 
issue  will  be  bought  up  at  a  low  figure  by  those  in 
the  scheme,  and  it  will  divide  the  profits  with  the 
old  stock.   Many  a  conservative  company,  whosf 


STOCKS   AND   BONDS  219 

stock  was  once  a  good  investment,  has  been 
wrecked  by  the  burden  of  interest  on  invisible  cap- 
ital, thus  laid  upon  it.  In  states  where  the  law 
requires  corporations  to  turn  over  to  the  state  all 
profits  in  excess  of  a  certain  percentage,  stocks  are 
"watered"  to  avoid  such  profit-sharing.  A  com- 
pany with  a  capital  of  one  million  dollars,  earning 
twelve  per  cent  a  year  in  a  state  allowing  only  six 
per  cent  profit,  rather  than  share  its  surplus  as  the 
law  requires,  will  double  its  capital,  thereby  appar- 
ently halving  its  profits ;  but  as  the  original  stock- 
holders get  the  new  issue,  it  is  only  the  state  that 
loses. 

A  good  interest-bearing  stock  is  called  a  "gilt- 
edged  investment,"  and  has  a  firm  value.  The  real 
value  of  a  stock  in  the  market  depends  upon  the  in- 
terest it  pays,  and  the  amount  of  stock  the  com- 
pany has  issued.  Its  cost  may  depend  upon  the 
fluctuations  of  the  stock-market ;  these  we  shall 
consider  later. 

Bonds  differ  from  stocks  in  that  bondholders 
have  no  voice  in  the  management  of  the  affairs  of 
the  company.  Bonds  are  simply  promissory  notes 
issued  on  a  large  scale  either  by  a  government  or 
by  private  corporations ;  in  the  latter  case  they 
are  secured  by  a  mortgage  on  its  property ;  they 
bear  a  stated  rate  of  interest,  and  are  payable  at 
a  definite  period.    They  are  issued  by  cities  for 


220     EVERY-DAY  BUSINESS   FOR  WOMEN 

municipal  improvements  ;  by  governments,  to  raise 
revenues  for  wars  or  running  expenses  or  improve- 
ments ;  by  great  corporations,  like  railroads  and 
trusts,  for  improvements  and  the  extension  of  busi- 
ness facilities.  They  are  really  huge  loans,  and  a 
bond  issue  is  handled  by  bankers,  who  buy  it  in 
bulk  from  the  issuers,  and  sell  it  in  detail  to  smaller 
investors.  The  bonds  of  a  corporation  have  the  first 
claim  upon  its  assets  in  case  of  bankruptcy,  and 
must  be  paid  before  the  stockholders  can  realize 
anything  from  their  shares  of  stock. 

The  interest  is  payable  either  quarterly  or  semi- 
annually ;  and  many  bonds  bear,  besides  the  main 
promise  to  pay,  signed  by  the  officials  issuing  the 
loan,  a  number  of  small  engraved  slips,  called  cou- 
pons, from  the  French  coupery  to  cut,  because  they 
may  be  cut  off  and  presented  when  the  interest  is 
due.  Any  bank  will  collect  these  for  its  depositors ; 
and  the  interest  on  such  bonds  will  not  be  paid 
unless  these  coupons  are  presented.  Another  class 
of  bonds  do  not  have  coupons,  but  are  registered  in 
the  owner's  name  at  the  office  of  the  corporation 
issuing  them ;  and  checks  for  the  interest  are  sent 
from  the  office  directly  to  the  holder. 

Bonds  are  the  most  convenient  form  for  borrow- 
ing money ;  and  cities  are  usually  restricted  by  law 
from  issuing  bonds  beyond  a  certain  amount ;  our 
own  government  is  likewise  restricted.   It  is  felt  to 


STOCKS  AND  BONDS  221 

be  unfair  to  saddle  the  next  generation  with  too 
great  a  load  :  for  bonds  usually  run  for  long  terms, 
sometimes  forty  years.  The  greater  the  credit  of 
the  issuer,  the  lower  the  rate  of  interest  which  he 
offers.  Our  own  last  issue  of  bonds,  that  of  1898, 
bore  only  three  per  cent  interest,  yet  sold  at  no. 
Turkish  and  Russian  government  bonds  pay  high 
rates  of  interest,  and  do  not  sell  at  par. 

Par  means  the  face  value  of  the  bond  or  stock. 
If  that  is  stated  to  be  one  hundred  dollars,  then  par 
is  one  hundred  dollars,  and  ninety-seven  dollars  for 
a  share  would  be  below  par,  while  one  hundred  and 
five  dollars  would  be  above  par.  In  the  language 
of  the  stock  exchange  these  values  would  be  in- 
dicated by  97  and  105  respectively.  If  bonds  or 
stock  are  below  par,  say  at  95,  one  can  buy  ten 
thousand  dollars*  worth  for  nine  thousand  five 
hundred  dollars ;  and  yet  will  receive  interest  on  the 
face  value.  If  a  bond  is  quoted  at  no,  he  must 
pay  eleven  thousand  dollars  for  ten  thousand  dol- 
lars' worth.  Hence  people  watch  the  markets,  to 
buy  good  securities  when  they  are  low,  and  sell 
them  when  they  are  high.  Since  the  value  of  an 
investment  consists  in  the  interest  which  it  pays  on 
the  money  represented  by  it,  it  is  plain  that  a  bond 
or  share  of  stock  that  pays  five  per  cent  may  really 
be  more  or  less  valuable  than  that.  The  purchaser 
who  pays  ninety-five  hundred  for  ten  thousand 


/ 


222     EVERY-DAY  BUSINESS   FOR  WOMEN 

dollars*  worth  of  stock  bearing  five  per  cent  interest, 
and  receives  five  hundred  dollars  as  interest,  really 
gets  five  hundred  dollars  interest  on  ninety-five 
hundred  dollars,  or  nearly  five  and  one  third  per 
cent  on  his  actual  investment ;  while  he  who  pays 
eleven  thousand  dollars  and  gets  only  five  hundred 
dollars  as  interest  receives  really  only  a  trifle  over 
four  and  a  half  per  cent.  This  is  the  way  men  as- 
certain the  real  value  of  an  investment,  —  the  actual 
percentage  returned  by  the  actual  investment.  The 
price  bonds  command  in  the  market  depends,  there- 
fore, primarily  on  the  rate  of  interest  they  bear, 
and  the  credit  of  the  issuer.  Since  bonds  are  pro- 
missory notes,  they  are  of  little  or  no  value  after  the 
bankruptcy  of  the  corporation  or  government  issu- 
ing them.  Many  people  learned  this  to  their  sor- 
row at  the  fall  of  the  Confederate  Government  in 
1865. 

Bonds  and  stocks  are  usually  exchanged  and  sold 
by  men  known  as  brokers,  who  charge  a  small  com- 
mission for  the  transaction.  As  a  regular  business 
most  of  this  buying  and  selling  is  done  on  the  floor 
of  the  Stock  Exchange.  Here  it  is  not  simple  value 
that  counts,  but  the  old  rule  of  supply  and  de- 
mand :  what  everybody  wants  is  high,  what  every- 
body discards  is  cheap.  So  the  men  who  hold  stock, 
and  want  to  sell,  try  to  create  in  the  minds  of 
others  a  desire  to  buy  ;  this  is  sometimes  done  by 


STOCKS   AND   BONDS  223 

tricks  and  dishonest  devices.  The  death  of  a  sov- 
ereign or  the  outbreak  of  a  war  will  depress  the 
securities  of  the  government  concerned,  and  others 
will  sympathize  with  their  decline.  A  rumored  divi- 
dend will  advance  the  price  of  the  stocks  concerned. 
The  men  who  are  trying  to  raise  prices  are  called 
bulls ;  those  who  are  trying  to  lower  them  are 
bears.  Sometimes  the  bulls  will  buy  a  lot  of  stock, 
and  keep  on  buying  until  enough  other  people  have 
caught  the  fever  and  are  buying  at  high  prices : 
then  the  bulls  quietly  "unload,"  or  sell  off  their 
stock.  As  soon  as  the  fictitious  demand  ceases,  the 
price  drops,  and  the  poor  "lambs,"  as  the  unin- 
itiated are  called,  are  shorn  of  their  fleece,  and  find 
themselves  with  unsalable  stocks  on  their  hands.  If 
they  have  purchased  the  stock  outright,  and  it  is 
really  a  good  stock,  they  do  not  suffer  much.  But 
if  they  simply  hold  title  on  a  margin,  a  great  drop 
in  the  price  will  spell  bankruptcy. 

To  purchase  on  a  margin  is  really  speculatingy 
—  some  call  it  gambling,  —  for  no  real  property 
changes  hands.  A  man  goes  to  his  broker  and  says, 
"  Buy  me  an  option  on  fifty  shares  of  such  a  stock  at 
90,"  and  pays  a  small  amount  of  the  value  required, 
usually  about  ten  per  cent,  the  broker  advancing  the 
rest.  The  next  day  the  stock  drops  to  85,  and  then 
he  must  pay  the  broker  the  five  per  cent  difference, 
to  "  keep  up  his  margin,"  as  the  phrase  goes.  The 


224     EVERY-DAY  BUSINESS   FOR  WOMEN 

stock  continues  to  drop,  and  as  he  held  options  on 
a  great  deal  more  stock  than  he  could  pay  for,  he  is 
presently  a  bankrupt.  If,  on  the  other  hand,  the  price 
rises,  he  makes  money  ;  for  if  he  chooses  to  sell  out, 
the  broker  will  pay  him  the  difference  between  his 
margin  price  and  the  present  market  price,  less  the 
broker's  commission  and  the  interest  on  the  ninety 
per  cent  loaned  by  the  broker  at  first.  The  manhas 
speculated  as  to  the  rise  and  fall  of  values.  For- 
tunes are  made  in  this  way,  but  many  more  are  lost : 
the  losers  keep  silence,  the  winners  are  advertised. 

A  panic  on  the  market  may  be  caused  by  the 
most  unforeseen  things  ;  and  once  confidence  is  de- 
stroyed, men  become  frightened  and  forget  their 
discretion ;  fear  is  quickly  communicated,  and  men 
are  seized  with  a  desire  to  sell,  and  throw  away  their 
holdings  for  almost  nothing.  Those  who  remain  cool, 
and  have  money,  promptly  buy  the  really  valuable 
stocks,  and  then,  when  confidence  is  restored  and 
prices  rise,  they  can  sell  them  at  a  handsome  profit. 

Wall  Street  in  New  York  City  is  the  greatest 
stock  market  in  the  United  States  ;  London's  Stock 
Exchange  represents  England,  and  the  Bourses  in 
Paris,  Brussels,  and  Berlin  stand  for  their  respective 
countries.  These  are  the  great  financial  centres ; 
and  a  panic  in  one  affects  the  others  also,  because 
the  stocks  of  several  countries  are  traded  in  at  all 
of  these  exchanges. 


STOCKS   AND   BONDS  225 

Ever  since  the  French  Revolution  taught  Euro- 
pean sovereigns  how  slight  was  their  tenure  of  king- 
ship, if  a  people  disapproved,  and  the  sad  straits  of 
dispossessed  royalty  in  exile  became  known  to  the 
world,  they  have  all  adopted  the  fashion  of  invest- 
ing large  amounts  from  their  private  revenues  in 
the  stocks  and  bonds  of  other  countries.  Because 
the  stability  of  the  English  government  and  the 
law-abiding  character  of  her  people  render  the 
chance  of  revolution  there  very  slight,  English  gov- 
ernment bonds  are  a  favorite  form  of  such  invest- 
ment ;  and  these  securities  are  kept  for  them  in  the 
vaults  of  the  Bank  of  England.  Then,  if  revolution 
comes,  and  they  can  escape  with  their  lives,  they 
will  not  be  penniless. 

Bonds  and  stocks  are  convenient  forms  of  invest- 
ment for  many  reasons.  They  are  portable,  they 
may  be  readily  sold,  and  usually  they  furnish  a  con- 
venient form  of  collateral,  or  security  to  a  bank  for 
a  loan ;  and  their  safe  keeping  occupies  small  space 
and  demands  little  care.  When  bonds  are  given  as 
collateral  for  a  note,  they  are  usually  pinned  to  the 
note ;  and  when  the  note  is  paid  they  are  returned, 
bearing  pin-holes,  of  course.  So  it  is  a  picturesque  de- 
scription of  a  man's  wealth  when  it  is  declared  of  him, 
that  his  strong-box  is  full  of  "gilt-edged  securities 
without  pin-holes."  Stocks  and  bonds  are  personal 
property,  and  should  be  honestly  returned  for  taxes.  . 


226    EVERY-DAY  BUSINESS   FOR  WOMEN 

Before  closing  this  subject,  let  us  recapitulate  its 
main  points. 

Stocks  are  shares  in  the  capital  of  a  company,  and 
produce  dividends. 

Bonds  are  promissory  notes  issued  by  govern- 
ments or  corporations,  and  bear  interest. 

Stockholders  may  be  liable  for  the  debts  of  a  cor- 
poration, or  only  for  the  value  of  their  own  shares, 
according  to  the  form  of  the  corporation. 

Bondholders  have  claims  upon  the  property  of  the 
organization  issuing  the  bonds. 

These  issues  of  bonds  sometimes  lead  to  interna- 
tional complications.  A  country  may  issue  bonds 
for  its  indebtedness,  and  it  may  happen  that  most 
of  them  become  the  property  of  foreign  capitalists. 
It  may  also  happen  that,  because  of  her  impaired 
credit,  as  is  the  case  with  most  of  the  Central 
and  South  American  states,  she  may  not  receive 
more  than  nine  hundred  thousand  dollars  for  a 
million -dollar  issue  of  bonds :  nevertheless,  interest 
must  be  paid  on  the  full  face  value,  and  the  full 
amount  must  be  paid  at  maturity.  If  she  fails  to  do 
so,  the  governments  whose  citizens  hold  these  bonds 
land  warships  on  her  coasts,  seize  the  customhouses, 
and  appropriate  the  revenues  therefrom  until  the 
foreign  debt  is  all  paid.  It  was  the  effort  of  Euro- 
pean creditors,  or  bondholders,  to  collect  their  debts 
by  such  means  that  led  to  the  Venezuelan  and  San 


STOCKS  AND  BONDS  227 

Domingan  complications.  For  the  United  States 
could  not  contemplate  armed  European  forces  on 
this  continent  without  protest,  and  announced  that 
the  Monroe  Doctrine  would  be  enforced,  unless  these 
and  other  claims  were  submitted  to  arbitration. 

Since  revolution  in  the  debtor  country  has  fre- 
quently followed  this  violence  by  the  creditor  na- 
tions, superinduced  by  the  bankruptcy  thus  precipi- 
tated, the  question  came  before  the  Hague  Peace 
Conference  of  the  Powers.  The  resolution  which 
was  finally  adopted  declares  that  force  shall  not  be 
used  in  the  collection  of  debts  by  civilized  nations. 
As  the  resolution  was  introduced  by  Dr.  Drago  of 
the  Argentine  Republic,  it  is  called  "the  Drago 
Doctrine." 

Two  expressions  which  are  frequently  heard  de- 
rive their  significance  from  the  stock  market.  "  I 
take  no  stock  in  it,"  means  that  the  speaker  places 
no  value  on  the  statement,  the  affair,  or  the  enter- 
prise, as  the  case  may  be :  he  is  in  no  way  a  sharer 
in  it.  When  we  say  that  "the  man's  word  is  as  good 
as  his  bond,"  we  mean  that  his  simple  promise  is 
as  good  as  a  written  promise  to  pay  accompanied 
by  a  guarantee,  which  the  law  would  enforce :  and 
though  couched  in  the  phraseology  of  the  stock 
market,  it  is  a  worthy  tribute  to  any  man  or  woman. 


CHAPTER  XVII 

WILLS   AND   ESTATES 

Men  dying  make  their  wills, 
Their  wives  escape  a  task  so  sad ; 

Why  should  they  make  what,  all  their  lives, 
The  gentle  dames  have  had  ? 

So  runs  the  old  rhyme  dating,  doubtless,  from 
the  time  when  married  women  could  not  legally 
make  wills.  Recent  legislation  has  changed  this  in 
most  of  the  states,  however,  so  that  the  same  rea- 
sons that  make  it  wise  for  a  man  to  make  a  will  are 
operative  upon  the  woman  also. 

Some  men  seem  to  think  that  to  make  a  will  is 
to  invite  the  Death  Angel ;  whereas  it  is  the  only 
way  in  which  their  legal  personality  can  be  pro- 
jected into  the  future,  and  the  property  which  has 
been  theirs  can  be  bestowed  upon,  and  enjoyed  by, 
those  whom  they  love  or  to  whom  they  are  under 
obligations.  For  if  a  man  dies  without  making  a 
will,  he  dies  intestate^  and  the  law  then  dictates  how 
his  property  shall  be  divided ;  and  often  makes  of 
it  a  distribution  which  is  far  removed  from  the 
affections  of  the  former  owner.  In  some  states, 
moreover,  the  state  takes  ten  per  cent  of  the  estate 


WILLS  AND   ESTATES  229 

of  a  man  who  dies  intestate,  and  so  lessens  the  sum 
for  division  among  his  legal  heirs  or  next  of  kin. 

Who  are  the  heirs  ?  who  are  the  next  of  kin  ? 
Frequently  the  same  people.  A  man's  wife  is  not 
his  heir,  nor  is  a  man  the  heir  of  his  wife ;  so  if 
either  dies  intestate,  the  law  provides  that  he  01 
she  shall  receive  a  certain  fixed  portion  of  the  estate, 
usually  a  third.  The  heirs  inherit  real  property  or 
estate,  and  the  title  passes  to  them  as  soon  as  the 
owner  dies ;  while  the  next  of  kin,  who  receive  the 
personal  property  of  the  deceased,  receive  it  only 
after  an  administrator,  appointed  by  the  court,  has 
paid  the  debts  against  the  estate.  The  heirs  and 
next  of  kin  are  :  first  children,  then  parents,  then 
sisters  and  brothers,  and  then  cousins  ;  there  is  a 
difference  in  the  order  of  inheritance  in  some  states. 

The  court  is  not  obliged  to  appoint  a  friend  of 
the  deceased  as  administrator,  and  some  tragic 
possibilities  lie  in  this  fact ;  for  most  of  a  man's 
wealth  may  be  personal  property,  —  jewels,  stocks, 
bonds,  and  such  things.  So,  if  a  man  wishes  to  have 
his  property  unevenly  divided  among  his  heirs,  or 
to  remember  a  friend,  or  to  make  special  provision 
for  any  one  who  would  not  inherit  under  the  law, 
he  should  make  his  will. 

The  old  form  used  to  distinguish  between  a  will, 
whereby  real  estate  was  devised,  and  a  testament, 
which  bequeathed  personal  property ;  but  the  usual 


230     EVERY-DAY  BUSINESS   FOR  WOMEN 

form  for  the  document  now  reads,  will  and  testa* 
me7tt. 

In  most  states  a  boy  at  eighteen,  and  a  girl  at  six- 
teen, may  legally  bequeath  their  personal  property  by 
testament;  but  to  make  a  valid  will^  the  man  must  be 
twenty-one,  and  the  woman  eighteen  or  twenty-one 
years  old,  according  as  the  state  has  fixed  the  age 
of  majority.  If  a  man  marries  after  he  has  made  a 
will,  it  is  not  thereby  invalidated,  or  made  of  no  value, 
unless  a  child  is  born  :  that  event  makes  it  of  no 
effect,  because  the  child  as  heir  has  first  claim.  But 
if  a  woman  marries  after  making  her  will,  that  act 
alone  invalidates  her  disposition  of  her  estate.  This 
law  is  based  on  the  old  social  theory,  that  by  mar- 
riage the  man  and  wife  became  one  person  legally. 
While  the  theory  has  changed,  and  also  some 
practices  dependent  upon  it,  this  fact  is  unchanged. 
The  wise  man  or  woman,  therefore,  will  make  a  new 
will  after  every  such  important  event  in  life. 

It  is  usually  the  part  of  wisdom  to  have  a  lawyer 
draw  up  one's  will ;  for  while  a  man  may  be  per- 
fectly competent  to  draw  up  his  own,  he  may  use 
phrases  to  which  the  law  attaches  a  special  meaning 
of  which  he  was  ignorant,  and  which  may  alter  the 
disposition  of  his  property.  For  instance,  a  man 
might  say,  "I  give,  devise,  and  bequeath  to  my 
daughter  Mary  ten  thousand  dollars  "  ;  and  intend 
an  absolute  gift :  in  law  he  has  only  given  her  a 


WILLS  AND   ESTATES  231 

life-interest.  He  should  have  said,  "  to  my  daughter 
Mary  and  her  heirs  forever,"  or  "to  my  daughter 
Mary  in  fee  simple."  A  home-made  will  should 
employ  the  simplest  phraseology  possible. 

Wills  are  usually  written  by  hand  on  legal  paper, 
though  sometimes  nowadays  they  are  typewritten ; 
but  as  it  is  easier  to  commit  fraud  by  typewriting, 
the  practice  is  discouraged. 

One  of  Rider  Haggard's  stories  is  called  "  Mr. 
Meeson's  Will,"  and  is  a  tale  of  a  shipwreck.  Among 
the  boatload  of  passengers  who  reach  a  desolate 
island,  are  the  rich  uncle  of  the  poor  nephew,  and 
the  girl  to  whom  the  nephew  is  engaged.  The  uncle 
desires  to  make  his  will,  leaving  his  property  to  said 
nephew,  because  on  the  voyage  he  has  acquired 
such  respect  for  the  young  lady.  But  in  the  hurry 
of  leaving  the  ship,  nobody  has  provided  himself 
with  pen  and  ink  and  paper ;  and  as  they  have  all 
properly  clad  themselves  in  woolen,  there  are  no 
writing  materials.  The  situation  grows  critical,  for 
Mr.  Meeson  is  dying  from  his  injuries.  The  fair 
young  woman  has  a  happy  inspiration :  the  will 
shall  be  tattooed  on  her  shoulders  !  So  a  sailor  whit- 
tles a  stick  to  a  sharp  point  and  concocts  an  ink 
from  something  he  finds  on  the  island,  and  on  this 
novel  parchment  tattooes  the  few,  short  sentences 
in  which  Mr.  Meeson  devises  and  bequeaths  all  his 
property  to  his  nephew.  It  is  duly  witnessed,  and 


232     EVERY-DAY  BUSINESS   FOR  WOMEN 

the  dying  man's  mark  affixed  to  it.  The  party  is 
rescued  later  and  brought  to  England. 

Now  the  law  requires  that  all  wills  must  be  taken 
to  the  Surrogate's  Court,  or  the  Probate  Court,  as 
it  is  called  in  some  places,  or  to  some  specially 
designated  office  ;  and  there  the  judge  endeavors  to 
ascertain  if  this  instrument  is  really  the  last  will  of 
the  man,  if  it  is  properly  executed,  is  genuine,  and 
has  fulfilled  all  the  requirements  of  the  law.  While 
this  inquiry  is  in  progress,  the  will  is  in  the  keep- 
ing of  the  court.  In  the  story  above  mentioned,  the 
young  woman  exhibits  her  shoulders  in  court,  that 
the  will  may  be  read ;  but  she  cannot  be  confined 
in  the  musty  safe  where  the  wills  are  ordinarily 
kept ;  so,  by  special  permission  of  the  court,  her 
shoulders  are  photographed,  and  the  plate  and 
the  photograph  are  kept  locked  up.  Eventually  the 
strange  will  was  declared  valid,  and  the  heroine 
thus  wins  the  fortune  for  her  hero. 

Why  was  this  a  valid  will  ?  Let  us  examine  it 
critically. 

It  contained  the  testator's  name,  since  it  began, 
"  I,  Jacob  Meeson  of  London,  England "  ;  (2)  it 
was  daUd  from  the  island  ;  (3)  it  was  signed  in  the 
presence  of  the  requisite  number  of  competent  wit- 
nesses ;  and  (4)  it  contained  no  erasures  or  inter- 
lineations ;  (5)  it  had  been  properly  executed,  that  is 
to  say,  the  testator,  as  the  maker  of  a  will  is  called. 


WILLS  AND   ESTATES  233 

had  signed  it,  or  made  his  mark  (X)  in  the  pre- 
sence of  witnesses,  to  whom  he  had  declared  that 
it  was  his  will,  thus  (6)  publishing  it,  according  to 
the  law's  meaning;  and  it  was  (7)  attested  or  signed 
also  by  the  witnesses,  of  whom  there  must  always 
be  two,  and  in  some  states  three,  to  make  attesta- 
tion sufficient.  It  is  said  that  George  Washington 
signed  his  name  to  every  sheet  of  his  will,  in  order 
to  protect  it  from  fraud. 

To  illustrate  some  other  curious  forms  of  wills,  I 
quote  the  following  passage  from  George  A.  Gard- 
ner's "  Handbook  on  Wills." 

"  So  a  letter  written  by  a  testator  to  a  friend, 
authorizing  him  to  take  charge  and  dispose  of  the 
testator's  property,  and  to  sell  and  convey  the  same 
as  his  executor,  properly  attested,  sufficiently  evi- 
dences the  testator's  intention  to  dispose  of  his 
property,  and  may  be  probated  as  a  will.  ,  .  .  The 
following  letter,  written  before  going  to  sea,  was 
held  to  be  a  valid  will :  *  A  thousand  accidents  may 
occur  to  me  which  might  deprive  my  sisters  of  that 
protection  which  it  would  be  my  study  to  afford ; 
and  in  that  event  I  must  beg  that  you  will  attend 
to  putting  them  in  possession  of  two  thirds  of 
what  I  may  be  worth,  appropriating  one  third  to 

Miss  C ,  in  any  manner  that  may  appear  most 

proper.' 

"  On  the  back  of  a  business  letter  the  testator 


234     EVERY-DAY  BUSINESS   FOR  WOMEN 

had  written :  *  Ann  :  after  my  death  you  are  to  have 
forty  thousand  dollars  ;  this  you  are  to  have  will,  or 
no  will,  take  care  of  this  until  my  death.'  This  was 
directed  to  Eliza  Ann  Byers,  and  secured  the  pro- 
perty for  her.  So  instruments  in  the  form  of  mar- 
riage-settlements, drafts  on  bankers,  receipts  for 
stock,  and  bills  endorsed,  *for  A.  B.'  and  checks 
and  stubs  in  a  check-book,  have  been  held  to  be 
testamentary." 

The  probate  of  a  will  is  an  important  proceeding. 
Soon  after  death  has  occurred,  the  will  is  taken  to 
the  Probate  Court,  —  "is  presented  for  probate," 
the  phrase  runs ;  notice  of  this  fact  is  given  in  the 
papers  for  two  or  three  weeks;  then,  at  a  special 
time,  the  executor  named  in  the  will  —  or  if  that  has 
been  omitted,  the  administrator  appointed  by  the 
court — and  the  witnesses  to  the  will  appear,  and 
answer  the  judge's  questions  :  if  they  knew  the  tes- 
tator, if  this  was  his  signature,  and  if  he  was  of 
sound  mind  ?  If  these  questions  are  satisfactorily 
answered,  the  will  is  probated,  and  the  executor 
proceeds  to  perform  his  duty.  It  is  at  this  time 
that  a  protest  must  be  made  if  the  will  is  to  be  con- 
tested. After  probate  the  will  is  recorded,  and  may 
be  seen  by  any  one. 

But  even  when  a  will  has  been  made,  a  man  can- 
not be  sure  of  having  his  own  way  about  the  dis- 
position of  his  property,  if  in  the  document  he  has 


WILLS  AND   ESTATES  235 

run  contrary  to  the  exceptions  and  directions  of 
the  law.  A  man  may  not  cut  his  son  or  daughter 
off  from  his  estate  in  case  he  or  she  marries, 
for  that  is  against  public  policy ;  he  may  make  his 
child  forfeit  the  share  upon  marriage  to  a  specified 
person,  however,  since  he  is  not  thereby  restricted 
from  marrying  at  all.  And  a  man  is  bound  to  leave 
something  to  each  of  his  children,  no  matter  how 
little.  If  he  omits  the  name  of  one  in  his  will,  the 
law  will  allow  the  unmentioned  child  to  share 
equally  with  his  brothers  and  sisters  ;  the  theory 
being  that  he  was  forgotten.  Hence  the  custom  of 
mentioning  the  child  and  giving  him  only  a  pit- 
tance ;  in  England  the  sum  is  usually  a  shilling. 
The  heir  may  be  "  cut  off  with  a  shilling  "  from 
any  claim  on  his  father's  fortune.  In  some  states  a 
man  cannot  will  away  from  his  widow  more  than 
two  thirds  of  his  estate,  nor  can  a  wife  deprive  her 
husband  of  an  equal  share.  The  laws  differ  widely 
in  different  states. 

If  it  can  be  proved  that  a  man  was  of  unsound 
mind  when  his  will  was  made,  it  can  be  broken ; 
or  if  the  disappointed  ones  can  prove  that  he  was 
unduly  influenced  in  his  bequests ;  or  if  a  witness 
to  the  will  is  a  beneficiary  under  its  provisions,  it 
may  be  broken  in  so  far  as  the  witness's  interest  is 
concerned,  and  the  property  distributed  according 
to  law.   Sometimes  the  law  restricts  a  man  from 


236     EVERY-DAY  BUSINESS   FOR  WOMEN 

giving  all  his  property  to  corporations,  or  from  tying 
up  his  property,  or  limiting,  beyond  a  fixed  period, 
the  power  of  the  one  to  whom  he  gives  it  to  dispose 
of  it  "as  he  sees  fit."  This  practically  forbids  the 
entailing  of  estates  beyond  the  second  generation. 

In  England  some  estates  are  entailed,  so  that 
they  pass  without  a  will  from  father  to  son  or  to  the 
nearest  male  heir  as  the  case  may  be,  and  cannot 
be  willed  away  from  the  heir,  or  sold ;  the  owner  is 
a  life-tenant  only.  If  for  any  reason  the  property 
must  be  sold,  then  the  holder  and  all  the  direct  heirs 
must  unite  in  cutting  off  the  entail. 

There  are  some  other  allowable  conditions,  how- 
ever. A  man  may  leave  his  property  to  his  wife, 
"so  long  as  she  is  my  widow."  A  large  bequest  of 
eighty  thousand  dollars  was  left  to  a  church  which 
had  an  old-fashioned  pulpit  fourteen  feet  high,  on 
condition  that  the  pulpit  should  never  be  lowered. 
Subsequently  the  church  was  destroyed  by  fire  ;  but 
the  new  one  had  to  be  built  on  the  old  lines,  with  a 
similar  pulpit,  in  order  to  keep  the  legacy. 

Ordinarily  any  one  may  witness  a  will,  provided 
he  is  of  sound  mind ;  but  the  Louisiana  law  forbids 
a  woman  to  witness  a  will.  A  witness  must  not  be 
named  in  the  will,  and  he  should  give  his  address 
below  his  signature,  so  that  he  may  be  easily  found. 

The  executor  is  the  man,  the  executrix  the  woman, 
named  in  the  will,  to  carry  out  the  provisions  of 


WILLS  AND   ESTATES  237 

the  will.  Unless  the  testator  or  testatrix  expressly 
states  to  the  contrary,  he  or  she  must  give  bonds 
for  the  faithful  performance  of  his  trust ;  he  is  en- 
titled to  all  expenses  incurred  and  to  a  certain  per- 
centage on  the  amount  handled  In  some  states  a 
married  woman  may  not  act  as  executrix.  A  man's 
funeral  expenses  and  doctor's  bills  constitute  a 
charge  upon  the  estate,  and  must  be  paid  before 
any  division  of  property  is  made.  All  debts,  in  fact, 
must  be  paid  first ;  and  if  a  man's  estate  is  not  suffi- 
cient to  meet  his  debts,  owing  sometimes  to  misman- 
agement by  incompetent  executors,  it  is  declared  to 
be  insolvent. 

An  inventory  of  all  the  personal  property  of  the 
deceased  is  usually  filed  with  the  will.  If  it  has  not 
been  made  beforehand,  the  executor  must  have  one 
made  immediately  and  swear  to  its  accuracy.  As  the 
court  will  hold  the  executor  to  strict  account  for  the 
disposition  of  the  properties  mentioned  in  the  in- 
ventory, the  values  are  usually  put  very  low,  so  that 
if  sold  the  items  would  certainly  bring  the  price 
affixed.  In  some  states  real  estate  is  not  reported 
until  sold. 

No  property  can  be  sold,  no  bills  paid,  nor  can  the 
bank  account  of  the  deceased  be  touched,  until  the 
executor  has  qualified  after  the  probate  of  the  will. 
Sometimes  this  is  very  embarrassing ;  there  may  be 
thousands  in  the  bank,  and  yet  the  widow  or  heirs 


238     EVERY-DAY  BUSINESS  FOR  WOMEN 

cannot  touch  a  cent  even  for  the  necessaries  of  life, 
until  the  legal  formalities  have  been  complied  with. 

It  is  the  duty  of  the  executor  to  collect  all  debts 
due  the  estate  as  promptly  as  possible,  and  to  pay  all 
just  claims  against  the  estate.  A  notice  to  creditors 
is  inserted  in  the  daily  papers  requesting  them  to 
present  their  claims,  properly  attested,  within  the 
time  prescribed  by  law,  usually  six  or  nine  months, 
or  payment  thereon  will  be  refused.  If  the  executor 
is  not  a  resident  of  the  place,  these  bills  must  all  be 
accompanied  by  a  sworn  statement  of  their  accuracy. 

The  executor  is  not  obliged  to  carry  out  personal 
contracts  entered  into  by  the  deceased,  for  death  ter- 
minates such  contracts :  even  servant's  wages  can- 
not be  collected  from  the  estate  under  the  law  of 
contract,  but  must  be  presented  as  claims. 

Before  an  executor  can  touch  the  bank  account 
of  the  deceased,  he  must  present  his  credentials  to 
the  bank ;  these  consist  of  a  statement  from  the 
Surrogate,  under  his  seal,  that  the  individual  men- 
tioned in  the  document  is  the  properly  qualified 
executor  of  the  person  in  whose  name  the  account 
stands.  Checks  that  may  be  presented  after  the 
death  of  the  drawer,  although  bearing  his  recog- 
nized signature,  will  not  be  cashed  by  the  bank  un- 
less it  is  specifically  requested  to  do  so  by  the  ex- 
ecutor, who  thus  assumes  the  risk  of  their  validity. 

It  is  well  for  any  executor  to  have  the  advice  of 


WILLS  AND   ESTATES  239 

a  good  lawyer  in  arranging  these  preliminaries  of 
his  executorship ;  he  may  thus  avoid  trouble  for  him- 
self afterwards,  for  the  heirs  may  call  an  executor 
to  account  within  twenty-one  years  after  the  dis- 
charge of  his  office. 

Sometimes  property  is  left  to  trustees  for  the 
benefit  of  the  widow,  the  children,  grandchildren,  or 
other  heirs ;  and  this  is  usually  a  very  wise  pro- 
vision ;  but  every  such  trust  should  state  explicitly 
what  disposition  is  to  be  made  of  the  fund  at  the 
death  of  the  beneficiary. 

After  a  will  has  been  made,  a  man  sometimes 
desires  to  alter  it  in  some  particular ;  so  he  adds  a 
codicil,  as  it  is  called.  This  is  really  a  postscript  to 
a  will,  and  is  used  where  a  person  desires  to  change 
a  will  without  making  a  new  one.  It  must  be  signed, 
dated,  and  witnessed  just  as  a  will  would  be.  Fre- 
quently the  main  dispositions  of  a  will  are  quite 
reversed  by  the  codicil. 

Formerly  a  valid  will  could  be  made  orally ;  but 
now  that  privilege  is  limited  to  soldiers  and  sailors 
in  actual  service,  who  have  not  time  or  opportunity 
to  make  a  written  will.  Such  an  unwritten  will 
is  called  a  nuncupative  will,  and  should  be  made 
before  two  witnesses.  "  It  is  valid  only  for  personal 
property,  not  for  real  estate."  ^ 

Frauds  in  connection  with  wills  are  many.  The 
*  Gardner,  loc,  cit. 


240     EVERY-DAY  BUSINESS   FOR  WOMEN 

will  probated  must  be  the  last  one  made ;  and  some- 
times, when  an  earlier  will  was  more  favorable  to  a 
certain  heir,  the  later  one  has  been  iniquitously  de- 
stroyed. Sometimes  a  sick  man  is  coerced  into  sign- 
ing a  will  written  for  him ;  sometimes  "  to  save  his 
soul,"  he  is  urged  to  give  most  of  his  property  t< 
the  church.  It  is  a  fruitful  theme  for  novelists  ;  for 
the  distribution  of  property  may  hang  on  slender 
threads.  A  curious  case  happened  some  time  ago ; 
a  man  and  his  wife  had  made  their  wills  in  such  a 
way  that  each  was  sole  heir  to  the  other.  They  were 
both  killed  in  an  automobile  accident ;  and  it  took 
a  lawsuit  to  determine  which  died  first.  If  the  hus- 
band had  died  first,  then  the  property  was  all  the 
wife's  and  went  to  her  heirs  and  next  of  kin  ;  if  the 
wife  had  died  first,  then  the  husband  had  inherited 
and  the  estate  went  to  his  heirs  and  next  of  kin. 

In  conclusion,  the  safest  advice  is  this :  consult 
a  good  lawyer  and  make  your  will,  remembering  all 
who  have  a  claim  upon  you ;  naming  an  executor, 
who  is  capable  and  honest ;  then  put  the  will  in  a 
safe  place  where  it  will  not  be  tampered  with  ;  and 
then,  having  disposed  of  your  financial  affairs,  — 

So  live,  that  when  thy  summons  comes  to  join 
The  innumerable  caravan  that  moves 
To  that  mysterious  realm,  where  each  shall  take 
His  chamber  in  the  silent  halls  of  death, 
Thou  go  not,  like  the  quarry  slave  at  night 


WILLS  AND   ESTATES  241 

Scourged  to  his  dungeon,  but,  sustained  and  soothed 
By  an  unfaltering  trust,  approach  thy  grave 
Like  one  who  wraps  the  drapery  of  his  couch 
About  him,  and  lies  down  to  pleasant  dreams. 

(«  Thanatopsis,"  William  Cullen  Bryant.) 


CHAPTER  XVIII 

FUNDAMENTALS   OF   BUSINESS 

Thus  far  we  have  considered  the  methods  and  sys- 
tems of  conducting  business,  the  responsibility  for 
our  acts,  and  the  dangers  to  be  avoided.  But  all  of 
these  presuppose  certain  principles  as  fundamen- 
tal, certain  individual  qualifications,  which  are  the 
necessary  foundations  for  any  successful  business. 
These  qualifications  may  be  briefly  classified  under 
ethics  and  habits.  Upon  the  possession  of  cor- 
rect habits  in  business  a  man's  financial  success 
depends ;  and  upon  his  ethics,  —  the  moral  motives 
for  his  actions,  —  it  depends  whether  or  not  he 
shall  "so  pass  through  things  temporal  that  he 
finally  lose  not  the  things  eternal." 

Let  us  consider  first  the  ethics  of  business. 
David  Harum's  mercantile  version  of  the  Golden 
Rule,  "  Do  unto  the  other  fellow  as  he  'd  like  to  do 
unto  you,  and  do  it  first,"  —  is  the  rule  of  many 
men  and  women  in  business  to-day.  There  are  in 
vogue  two  codes  which  may  be  distinguished  as 
Bible  Ethics  and  Business  Ethics,  so  that  the  old 
terms  no  longer  mean  the  same  thing  to  every  man. 
Honesty,  for  instance,  is  differentiated  into  plain 


FUNDAMENTALS  OF   BUSINESS      243 

honesty  and  law  honesty ^  the  former  indicating  that 
manner  of  dealing  in  which  a  man  will  not  touch 
what  is  not  his,  will  not  take  advantage  of  his 
neighbor's  ignorance  or  weakness  to  overcharge 
him,  and  which  renders  fair  service  for  value  re- 
ceived. The  latter  term  means  to  profit  by  every 
quibble  of  law  to  get  an  unfair  advantage  over  one's 
neighbor ;  to  cheat  and  deceive  him,  to  give  things 
false  names  and  falser  appearances,  just  so  far  as  it 
can  safely  be  done  without  laying  one  under  pen- 
alty of  the  law  for  fraud,  perjury,  or  kindred  crimes. 
As  a  distinguished  gentleman  has  recently  said, 
**  Honesty  that  is  merely  honesty  because  it  is  the 
best  policy,  is  not  honesty  at  all." 

Honor  is  another  term  common  to  both  codes. 
The  dictionary  declares  that  "  honor  is  a  nice  sense 
of  what  is  right,  —  or  conformity  to  accepted  rules 
of  conduct."  Now,  what  is  really  meant  by  the 
phrase,  "a  man  of  honor  "  }  Honor  requires  a  man 
to  have  such  a  high  regard  for  his  promise,  whether 
it  involves  a  financial  or  social  obligation,  that  it 
may  be  said  of  him,  "  His  word  is  as  good  as  his 
bond."  Honor  forbids  a  man  to  avail  himself  of  a 
legal  technicality  to  avoid  just  obligations;  a  debt 
of  his  is  never  outlawed,  although  unfortunate  cir- 
cumstances may  postpone  its  payment  past  the 
legal  time  for  pressing  it.  Honor  is  one  of  the  es- 
sential ingredients  of  a  good  reputation;  for  the 


244     EVERY-DAY  BUSINESS   FOR  WOMEN 

man  of  honor  no  slur  must  attach  to  anything  that 
is  his,  whether  it  be  his  family  or  that  which  he 
undertakes  to  do  or  to  guard ;  it  holds  him  to  the 
faithful  performance  of  every  trust,  every  duty, 
even  those  that  are  his  only  by  implication.  It  is  a 
flower  of  the  old  chivalry,  which  had  its  roots  in 
the  ethics  taught  by  the  old  Hebrew  sage  who 
declared  that  "  a  good  name  is  rather  to  be  chosen 
than  great  riches." 

In  his  story  of  "  The  Wreckers  "  Stevenson  puts 
a  discussion  about  honesty  into  the  mouths  of  Jim 
Pinkerton  and  Loudon  Dodd,  Pinkerton  represent- 
ing ordinary  "law  honesty," and  Dodd  the  honesty 
of  a  man  of  honor.  Dodd  finally  closes  his  argument 
with  these  words  :  "  You  seem  to  think  honesty  as 
simple  as  blind-man's  buff.  It 's  a  more  delicate 
affair  than  that;  delicate  as  any  art."  And  like  art 
it  must  be  studied  and  habitually  practiced  to  be 
fully  understood.  Since  a  fine  sense  of  honor  and 
a  nice  sense  of  honesty  are  not  acquired  nor  lost  in 
a  day,  let  us  look  for  a  moment  at  some  things  of 
common  parlance,  and  see  their  real  standing. 

Children  on  the  streets  and  at  school  sing  among 
themselves  a  rhyme,  — 

Finders  keepers. 
Losers  weepers,  — 

and  think  it  a  sufficient  justification  for  keeping 
things  they  may  have  found,  even  when  they  know 


FUNDAMENTALS  OF  BUSINESS        245 

the  real  owners.  It  is  a  vicious  principle,  that  if 
unchecked  will  bear  fruit  in  later  life  in  fraud  and 
dishonesty;  it  had  its  origin,  doubtless,  in  those 
times  which  followed  — 

the  good  old  plan, 

That  they  should  get  who  have  the  power, 

And  they  should  keep  who  can. 

"  Get  -  rich  -  quick  "  propositions  are  specious 
schemes  whereby  one  invests  a  small  sum,  and  is 
to  receive  exorbitant  returns  for  the  investment. 
All  sorts  of  wild  plans  to  achieve  this  end  have  had 
their  dupes,  since  the  days  when  the  South  Sea 
Bubble  collapsed  and  wrecked  a  ministry  as  well 
as  the  private  fortunes  of  two  continents. 

Is  it  honesty  that  falsifies  assets  in  order  to  de- 
ceive investors  .-*  that  leaves  money  in  the  treasury 
when  a  party  goes  out  of  power  in  the  town,  loudly 
proclaiming  its  prosperous  policy,  yet  leaving  in 
the  pigeon-holes  bills  much  in  excess  of  any  avail- 
able funds  ? 

What  shall  we  say  of  dealers  whose  advertise- 
ments exhaust  the  vocabulary  of  descriptive  adjec- 
tives, and  who  present  to  the  customer  allured  by 
them  something  entirely  unfit  for  such  description .? 
The  justification  offered  for  the  falsehood  is  that 
"  it 's  good  business  "  to  get  people  there  by  any 
means,  for  then  they  will  buy  something  else.  The 
concealment  of  known  defects,  of  the  rotten  place 


246    EVERY-DAY  BUSINESS   FOR  WOMEN 

under  the  paint,  are  all  sins  that  result  from  such 
a  code  for  business.  It  is  as  true  now  as  it  was  in 
Ben  Sira's  day,  who  records  in  Ecclesiasticus  as 
the  result  of  a  long  experience  and  much  observa- 
tion in  Babylon  and  elsewhere,  that  — 

A  merchant  shall  hardly  keep  himself  from  doing  wrong  ; 

And  an  huckster  shall  not  be  freed  from  sin. 

Many  have  sinned  for  a  small  matter ; 

And  he  that  seeketh  for  abundance  will  turn  his  eyes  away. 

As  a  nail  sticketh  fast  between  the  joinings  of  the  stones ; 

So  doth  sin  stick  close  between  buying  and  selling. 

(Ecclesiasticus,  xxvi,  30;  xxvii,  i,  2.) 

There  are  struggling  newspapers  and  magazines 
which  insert  advertisements  of  reputable  houses, 
unauthorized  by  them,  and  for  which  they  do  not 
pay,  merely  to  fill  their  own  pages  and  give  them  a 
standing  in  the  advertising  world.  There  are  other 
papers  which  send  gratuitous  copies  to  prominent 
people,  then  claim  them  as  subscribers,  and  use 
them  as  a  bait  to  allure  others.  Is  all  this  honest } 

So  much  for  business  morals.  But  under  it  all 
there  is  a  moral  sense  in  the  community  which  de- 
mands that  a  man  doing  business  shall  be  fair  in 
his  dealings,  that  he  may  be  depended  upon  not  to 
cheat  his  customers  or  clients ;  that  he  shall  pay 
his  debts,  and  keep  his  contracts,  and  stick  to  his 
bargains.  These  ethical  qualifications  for  business 
are  equally  necessary  for  transactions  in  the  com- 


FUNDAMENTALS   OF   BUSINESS        247 

mercial  mart,  or  in  the  circle  of  social  intercourse 
and  fancy  fairs  and  bazars. 

There  are  certain  habits  which  are  fundamental 
to  the  successful  transaction  of  business.  First 
and  foremost  is  a  careful  attention  to  the  matter  in 
hand.  We  have  all  seen  women  stop  in  the  midst 
of  business  transactions  to  gossip  with  a  friend, 
while  the  other  party  waits  ;  or  have  known  men 
at  a  board  meeting  to  digress  from  the  subject 
under  discussion  and  waste  the  time  of  the  others. 
Plainness  of  statement,  strict  attention  to  the  sub- 
ject, the  elimination  of  superfluous  words  or  items, 
fairness  to  others  in  word  and  act,  patience  and 
perseverance  that  drive  the  matter  to  a  conclusion, 
and  such  attention  to  details  that  no  unfinished 
ends  are  left  to  mar  the  completeness  of  the  work, 
—  these  should  all  be  included  in  the  ideal  of  the 
man  or  woman  who  aims  to  acquire  correct  busi- 
ness habits. 

Another  requisite  for  success  is  neither  a  habit 
nor  strictly  speaking  an  ethical  requirement ;  for  it 
is  by  education  and  training  that  one  acquires  a 
sense  of  values.  This  is  an  important  possession, 
and  most  necessary  to  have  if  one  is  to  dodge 
"gold-brick  schemes,"  specious  advertising,  and 
bad  bargains  generally. 

The  economists  declare  that  "  value  is  power  in 
exchange,"  or  to  put  it  more  simply,  the  commer- 


248     EVERY-DAY  BUSINESS   FOR  WOMEN 

cial  value  of  a  thing  is  simply  what  we  can  procure 
with  it.  When  buying  things,  it  is  well  to  remem- 
ber what  one  is  giving  in  exchange  for  what  one  is 
getting.  The  price  paid  always  includes  the  labor  of 
production  and  the  profits  as  well.  Now  if  the  price 
asked  is  manifestly  below  what  all  these  considera- 
tions should  total,  it  is  evident  that  one  should  be 
wary.  It  is  a  safe  rule  to  assume  that  an  extremely 
low  price  for  a  good  article  usually  implies  that 
somewhere  along  the  line  of  its  travels,  from  raw 
material  to  finished  product  on  the  shop  counter, 
some  one  has  been  cheated,  or  defrauded  of  the 
just  reward  due  for  labor  or  compensation  for 
material  furnished.  There  are  real  instances  of  bar- 
gains, sometimes  based  on  the  forced  sales  of  bank- 
ruptcy ;  but  usually  the  rule  holds  that  value  must 
be  given  for  value. 

Value  is  determined  by  many  things  :  the  cost  of 
a  thing  in  labor  and  raw  materials ;  the  distance  it 
must  travel  to  reach  the  point  where  it  is  wanted ; 
the  number  of  people  through  whose  hands  it  passes 
from  consumer  to  producer ;  its  scarcity,  for  accord- 
ing to  the  great  law  of  supply  and  demand,  the  price 
is  high  when  demand  exceeds  supply,  and  vice  versa; 
the  fresh  or  soiled  condition  of  the  goods,  the  situa- 
tion of  the  place  where  they  are  sold,  and  the  ele- 
gance of  the  shop-appointments,  all  go  to  make  the 
cost  of  the  articles.  If  all  these  facts  were  con- 


FUNDAMENTALS   OF   BUSINESS        249 

sidered,  people  would  less  frequently  travel  an  hour 
by  trolley  to  save  a  cent  a  yard. 

In  buying  mines  or  stocks  the  real  value  is  de- 
termined by  the  difference  between  the  price  paid 
for  the  property,  the  expenses  of  operation,  and 
the  money  received  for  the  product,  or  earned  by  the 
railroad.  These  considerations  do  not  include  the 
artificially  created  prices  of  stock-exchange  specu- 
lation. 

Another  way  of  ascertaining  values,  or  estimat- 
ing the  real  cost  of  a  thing,  is  to  reduce  the  price  to 
a  percentage  of  one's  income.  Suppose  a  man  earns 
a  hundred  and  fifty  dollars  a  month.  He  wishes  to 
take  a  friend  to  the  opera ;  tickets,  carriages,  flowers, 
and  supper  will  make  thirty  dollars  disappear  rapidly ; 
that  is  to  say,  he  will  squander  for  one  evening's 
pleasure  the  product  of  six  days'  work.  Will  it  be 
worth  that  to  him  ?  Every  time  he  spends  eighteen 
dollars  he  spends  one  per  cent  of  his  income.  Or 
take  the  case  of  a  girl  who  has  an  allowance  of  six 
hundred  dollars  a  year  for  clothes.  Fifteen  dollars 
seems  a  small  amount  to  pay  for  a  hat,  but  when 
she  has  bought  it,  two  and  a  half  per  cent  of  her 
allowance  has  gone;  and  the  other  ninety-seven 
and  a  half  per  cent  must  buy  gowns  and  shoes  and 
gloves  and  coats  and  furs  and  underwear  and  etcet- 
eras, and  more  hats !  Will  it  suffice  ?  If  more  people 
acquired  this  good  business  habit  of  putting  values 


250    EVERY-DAY  BUSINESS   FOR  WOMEN 

into  percentages,  they  would  be  less  reckless  about 
their  expenditures  for  clothes.  For  the  business 
man,  when  a  proposition  is  submitted  to  him,  says, 
"  Let  me  see  first  what  per  cent  that  will  yield 
upon  the  investment." 

There  is  an  unwritten  law  in  business  whose  basis 
is  loyalty.  It  is  assumed  that  a  man  will  not  betray 
his  employer's  interests ;  that  he  will  be  discreet 
enough  not  to  discuss  his  affairs  with  every  gossip  ; 
and  that  any  secrets  of  his  employer  which  may  come 
to  his  knowledge  will  be  jealously  guarded  —  and 
that,  too,  without  any  specific  request  on  the  part 
of  the  employer.  The  same  principles  hold  for  direc- 
tors of  corporations,  or  for  any  persons  in  positions 
of  trust ;  the  assumption  is  that  they  will  not  betray 
their  trust.  The  recent  case  where  a  private  secre- 
tary sold  to  a  sensational  newspaper  a  letter  his 
employer  had  dictated  to  him,  was  a  base  betrayal 
of  con^dence  and  was  justly  stigmatized;  no  man 
of  honor  would  have  done  such  a  thing. 

Another  essential  element  to  success  in  business 
is  the  way  of  doing  it.  Do  manners  pay  ?  are  they 
worth  anything  to  a  business  man  or  woman  ?  Do 
the  little  courtesies  and  amenities  of  social  inter- 
course fail  of  effect,  or  are  they  out  of  place  in  the 
transactions  of  every-day  business.!*  These  questions 
are  not  often  asked  directly,  but  they  are  implied 
by  the  attitude  of  all  those  who  do  business.  One 


FUNDAMENTALS   OF   BUSINESS        251 

might  answer  them  all  by  one  counter-question.  Is 
a  man  or  a  woman  less  of  a  human  being  by  reason 
of  his  occupation  ?  and  if  these  things  tend  to  reduce 
friction  and  to  make  intercourse  more  easy  else- 
where, why  should  they  be  debarred  from  the  count- 
ing-house, the  shop,  the  factory,  the  market,  or  the 
railroad  station  ?  The  man  with  a  poor  article  to  sell, 
or  a  fraud  to  perpetrate,  is  always  suave,  because  he 
knows  that  pleasant  manners  gain  attention  and 
avert  too  close  inspection  of  his  goods  or  schemes. 
Some  people  seem  to  think  that  because  knaves  are 
polite,  honest  people  should  be  curmudgeons.  This 
is  manifestly  an  incorrect  attitude;  for  courteous 
roguery  is  successful,  while  worth  that  is  churlish 
fails  of  its  due  recognition.  Why  then  should  we 
leave  a  courteous  business  manner  to  be  the  valu- 
able asset  of  rogues  ? 

Any  business  transaction  implies  at  least  two 
parties,  the  other  person  and  yourself;  or,  as  the 
legal  phrase  runs,  the  party  of  the  first  part  and  the 
party  of  the  second  part.  No  matter  what  the  specific 
case  under  consideration  may  be,  such  transaction 
is  fundamentally  to  bring  the  parties  into  agreement 
about  that  thing.  Now,  if  there  is  unwillingness  on 
the  part  of  one  person,  will  bluntness  or  rudeness 
on  the  part  of  the  other  make  him  willing  }  A  small 
child  will  tease  cunningly  for  what  he  wants  ;  his 
elders  are  most  successful  when  they  seek  to  ob- 


252     EVERY-DAY  BUSINESS   FOR  WOMEN 

tain  what  they  want  by  equal  persistence  and  equal 
charm  of  manner. 

Courtesy  is  contagious,  and  if  one's  bearing  be 
courteous  the  veriest  boor  will  respond  to  it  in  some 
sort ;  and  will  be  ashamed  to  return  incivility  for 
civility. 

There  is  a  story  told  of  a  poor  woman  who  worked 
by  the  day  in  several  nice  families,  and  who  taught 
her  children  the  courtesies  she  observed  at  these 
houses  ;  because,  as  she  explained  to  her  carping 
neighbors,  the  children  had  their  living  to  earn,  and 
it  would  help  them  to  better  positions  if  they  had 
"  nice  manners."  There  are  many  men  and  women 
whose  pleasant  manners  are  regarded  by  their  em- 
ployers as  valuable  assets,  and  whose  small  faults 
are  overlooked  for  the  sake  of  these  graces. 

A  recent  issue  of  a  prominent  trade  journal  gave 
this  advice  to  its  readers:  "Don't  start  in  this  fall 
with  a  single  salesman  or  other  employee  that  comes 
in  contact  with  customers,  who  is  cranky,  cross, 
and  disagreeable.  That  class  of  man  never  did  pay, 
and  he  never  will." 

There  are  people  who  seem  always  to  assume  at 
the  outset  that  everybody  is  intending  to  cheat  them. 
And  while  it  is  undoubtedly  true  that  one  must  be 
always  on  the  alert  to  guard  against  such  a  con- 
tingency, still  it  is  never  necessary  to  express  it  in 
manner :  it  is  better  to  assume  that  the  other  party 


FUNDAMENTALS   OF  BUSINESS        253 

is  honest  and  to  act  courteously ;  the  assumption 
will  often  be  made  good.  Suppose,  for  instance,  that 
one  has  been  overcharged  on  a  bill :  to  secure  jus- 
tice it  is  not  necessary  to  storm  and  call  the  man  a 
cheat.  Just  remember  that  he  is  human  and  liable 
to  error,  and  give  him  the  benefit  of  the  doubt. 
There  are  nine  chances  to  one  that  it  was  an  error ; 
and  if  it  should  prove  to  be  the  tenth  chance  and 
the  mistake  was  made  purposely,  your  courtesy  has 
given  the  man  a  plausible  apology  for  his  intended 
dishonesty,  and  he  will  probably  rectify  his  "  mis- 
take." 

The  Chinese  are  very  sensitive  about  such  mat- 
ters. Dr.  Arthur  Brown  tells  the  following  story. 
A  gentleman  in  China,  who  had  missed  many  arti- 
cles from  his  possessions,  finally  found  them  in  the 
servant's  trunk.  Did  he  openly  charge  the  servant 
with  stealing }  Oh,  no !  He  called  the  man  to  him 
and  said,  "  John,  some  enemy  of  yours  has  been  at 
work  and  put  these  things  of  mine  in  your  trunk. 
Now  this  must  n't  happen  again ;  you  must  settle 
with  that  enemy,  so  that  he  will  not  do  so  any 
more."  John  assented  gravely,  and  the  stealing 
stopped ;  but  by  using  this  roundabout  method  of 
dealing  with  John,  the  employer  had  "  saved  his 
face,"  as  the  Chinese  say,  so  that  he  could  retain 
his  situation  without  loss  of  his  self-respect. 

Part  of  one's  business    relations   is  connected 


254     EVERY-DAY  BUSINESS   FOR  WOMEN 

with  the  house,  for  we  have  seen  that  servants 
stand  in  a  business  relation  to  their  employers; 
and  every  observant  person  knows  that  courtesy 
lends  wings  to  otherwise  tardy  feet,  and,  like  a 
lubricating  oil,  makes  the  wheels  of  the  domestic 
machinery  run  smoothly.  There  are  people  who 
so  radiate  courtesy  that  their  presence  is  like  sun- 
shine ;  and  they  leave  good-nature  in  their  wake,  so 
that  one  may  trace  their  path  by  the  smiles  that 
follow  them.  The  man  or  woman  who  has  sufficient 
self-control  to  remember  to  say  "good-morning," 
even  when  pressed  with  business,  may  safely  be 
relied  on  for  cool-headedness  in  emergencies  ;  for 
such  a  state  of  mind  indicates  poise. 

The  courteous  way  of  shopping  implies  consid- 
eration for  the  other  party  to  the  business.  If  the 
salesman  has  been  put  to  some  trouble  to  show 
goods,  and  no  sale  has  been  made  because  they  did 
not  suit,  it  is  a  very  simple  return  to  thank  him  for 
his  trouble.  It  is  never  desirable  to  haggle  over  the 
price  of  any  article.  In  any  respectable  store  in 
America  the  price  is  fixed  ;  and  if  one  does  not 
like  it  one  may  decline  to  buy.  It  is  absolutely  out 
of  place  to  storm  about  "  the  perfectly  exorbitant 
price  "  to  the  tradesman,  for  there  is  no  compulsion 
exercised  to  make  one  purchase  at  that  place,  and 
it  is  easy  to  go  elsewhere. 

On  the  other  side  of  the  counter  there  is  need 


FUNDAMENTALS   OF   BUSINESS        255 

of  courtesy  too,  and  the  best  stores  will  not  tol- 
erate anything  else,  nor  allow  saleswomen  to  carry 
on  conversations  with  each  other  while  apparently 
serving  customers.  A  desire  to  serve,  and  to  do  so 
without  comment,  or  discrimination  in  manner  be- 
tween the  large  and  the  small  purchaser,  is  the  ideal 
for  the  salesman  or  saleswoman. 

In  writing  business  letters,  some  people  seem  to 
think  that  the  more  peremptory  the  tone  the  more 
businesslike  is  the  style.  This  is  far  from  the  case. 
A  business  letter  should  be  courteous  in  tone,  and 
explicit  in  its  statements.  Time  spent  in  the  polite  ex- 
pression of  one's  wants  is  not  time  wasted,  and  helps 
rather  than  hinders  in  reaching  the  desired  result. 

Foreigners  doing  business  are  much  more  care- 
ful in  this  regard  than  many  of  us  are ;  and  they 
still  retain  the  forms  and  expressions  of  profound 
respect  and  politeness  which  we  have  largely  for- 
gotten. Letters  received  by  them  are  still  "  es- 
teemed favors,"  and  the  firm  is  often  described  as 
"your  respectful  and  obedient  servants."  It  is  a 
more  circuitous  fashion,  but  it  promotes  better  feel- 
ing than  some  of  our  curt  business  letters  do.  Our 
best  business  firms  are  most  particular  about  the 
tone  of  their  letters.  It  is  true  here  also  that  cour- 
tesy brings  courtesy  in  return  ;  and  a  firm  is  always 
more  willing  to  serve  a  customer  who  is  courteous 
than  one  who  is  not. 


256     EVERY-DAY  BUSINESS   FOR  WOMEN 

In  traveling  also  there  is  the  same  need  of  cour- 
tesy toward  those  with  whom  one  has  to  deal,  who- 
ever they  may  be ;  and  there  are  many  times  and 
places,  especially  here  in  America,  in  parts  uncor- 
rupted  by  European  habits,  where  courtesy  will 
obtain  more  than  "  tips."  A  recognition  of  com- 
mon humanity  and  dependence  must  underlie  such 
behavior,  for  "  politeness  is  the  outward  garment 
of  good- will." 

Another  rule  for  the  safe  and  prompt  transaction 
of  business  is  to  take  so  much  trouble  in  preparing 
matters  that  it  may  be  as  easy  as  possible  for  the 
other  party  to  cooperate  with  you.  People  are  gen- 
erally lazy,  and  if  a  path  is  already  opened  they  are 
more  apt  to  follow  it. 

It  is  well  to  remember  that  discourtesy  hurts  no 
one  so  much  as  the  man  who  is  guilty  of  it ;  for  not 
only  does  it  injure  his  own  character,  but  it  lowers 
him  in  the  estimation  of  all  who  witness  it.  The 
business  man  who  is  polite  only  to  his  superiors,  as 
he  deems  them,  will  some  day  fall  into  the  trap  of 
mistaken  identity.  Courtesy  pays,  not  only  in  coin 
but  in  character ;  and  the  more  modern  rendering 
of  the  beatitude  is  not,  "  Blessed  are  the  meek," 
but  "Blessed  are  the  courteous."  It  is  the  dis- 
tinguishing mark  of  true  gentility,  and  its  absence 
indicates  the  boor  or  snob,  no  matter  what  his  rank 
or  millions. 


FUNDAMENTALS  OF  BUSINESS       257 

To  sum  up  the  whole  matter,  then,  one  may  say 
that  the  essential  qualifications  for  doing  business 
of  any  kind  and  under  any  circumstances  are  the 
acquisition  of  careful  business  habits,  the  judgment 
that  has  a  just  appreciation  of  values,  and  the 
possession  of  a  sound  code  of  morals  based  upon 
the  teaching  and  tradition  of  honorable  men  of  all 
ages. 

It  is  probably  true  that  this  standard  of  business 
probity  may  seem  impracticable ;  that  absolute  and 
unvarying  truth  and  honesty  and  fairness  some- 
times seem  to  handicap  their  possessor,  and  leave 
him  a  laggard  in  the  race  for  wealth.  But  is  wealth 
all  that  makes  life  valuable  ?  Is  it  worth  the  moral 
surrender  that  its  acquisition  sometimes  demands  ? 
And  then  may  it  not  also  be  true  that  there  are 
many  men  who  need  only  leadership  and  courageous 
example  to  proclaim  their  adherence  to  the  higher 
standard  ?  who  believe  that  righteousness,  which  is 
right  doing,  has  a  large  and  important  place  even  in 
the  most  mercenary  transactions,  and  would  gladly 
strive  to  have  it  so  ?  who  look  upon  business  as  a 
moral  investment  also,  and  who  repeat  with  earnest 
emphasis  the  question,  asked  nineteen  hundred 
years  ago,  "  What  shall  it  profit  a  man  if  he  shall 
gain  the  whole  world  and  lose  his  soul  ? " 


APPENDIX  A 
LETTER   OF   CREDIT 

TonalM. 
CIRCULAR  LETTER  OFXREOIT. 

/io.  \  11212.  ^.^.g<o4A._^ ^9f 

eL^  a^^ly^a^tz^ruH^,^^^  o/M  1 00.    Sn  E    HUNDRED  /laitrvc^  *«i«^^ 

^^n^    c^^^ruifvc^  C^la/U    o^    M^FS.    BROWN.    SHIPLEY   &   CO., 

LUlML/UNt     eeicA    e^Ui-jU     to      ^     A)Bg^rvCi^      **t€uAe^    «<*     cdla/UA*t      u*ht^t 
^io^u^  ^uUL^  #  ^o'^^Jettu  ^J>l^t/  \\0.   B   11212. 

Ute    e^uaoro^    6^^  dctoA    ez^^    d^^zCc'^*9ve€^-tv^^..€/cce-'  H>a»to€^tn> 


t^tt^il-  t^e^'j^ot4,M  ^..  ctznyCt/ie^^  ct.fi^^^i^fi^liton'CC^  to  -  tAe^  fc^^<z^  ctlezft  (/l€iMf4z. 


26o  APPENDIX 

APPENDIX   B 
RULES   FOR  COMPUTING   INTEREST 

The  following  will  be  found  to  be  excellent  rules  for  find- 
ing the  interest  on  any  principal  for  any  number  of  days. 
When  the  principal  contains  cents,  point  off  four  places  from 
the  right  of  the  result  to  express  the  interest  in  dollars  and 
cents.  When  the  principal  contains  dollars  only,  point  o£E 
two  places. 

Four  per  cent.  —  Multiply  the  principal  by  the  number  of 
days  to  run,  and  divide  by  90. 

Five  per  cent.  —  Multiply  by  number  of  days,  and  divide 
by  72. 

Six  per  cent.  —  Multiply  by  number  of  days,  and  divide 
by  60. 

Seven  per  cent.  —  Multiply  by  number  of  days,  and  divide 
by  52. 

Eight  per  cent.  —  Multiply  by  number  of  days,  and  divide 

by45- 

Nine  per  cent.  —  Multiply  by  number  of  days,  and  divide 
by  40. 

Ten  per  cent.  —  Multiply  by  number  of  days,  and  divide 
by  36. 

Twelve  per  cent.  —  Multiply  by  number  of  days,  and  divide 
by  30. 

Fifteen  per  cent.  —  Multiply  by  number  of  days,  and  divide 
by  24. 

Eighteen  per  cent.  —  Multiply  by  number  of  days,  and 
divide  by  20. 

Twenty  per  cent.  —  Multiply  by  number  of  days,  and 
divide  by  18. 

Twenty-four  per  cent.  —  Multiply  by  number  of  days,  and 
divide  by  15. 


APPENDIX 
INTEREST  TABLES 


261 


4% 

$1 

.00 

$2 
.00 

$3 

$4 
.00 

«5 
.00 

$6 
.00 

$7 
.00 

$8 

.00 

$9 
.00 

$10 
.00 

$100 

$1000 

j'^.r 

.00 

•OS 

t 

.00 

.00 

.00 

.00 

.00 

.00 

.00 

.00 

.01 

.01 

.09 

12    " 

.00 

.00 

.00 

.00 

.00 

.01 

.01 

.01 

.01 

.02 

.14 

]:n 

16    " 

.00 

.00 

.00 

.00 

.01 

,01 

.01 

.02 

.02 

.02 

.18 

20    « 

.00 

.00 

.00 

.01 

.01 

.02 

.02 

.02 

.02 

.02 

.22 

2.23 

24    « 

.00 

.00 

.01 

.01 

.02 

.02 

.02 

.02 

.03 

•03 

.27 

2.67 

28    " 

.00 

.00 

.01 

.01 

.02 

.02 

.02 

•03 

•03 

•03 

•31 

3-" 

I  mo. 

.00 

.00 

.01 

.02 

.02 

.02 

.03 

•03 

.03 

.04 

•34 

3-34 

2    " 

.00 

.02 

.02 

.03 

.04 

.04 

•OS 

.06 

.06 

.07 

.67 

6.67 

3   " 

.01 

.02 

.03 

.04 

•OS 

.06 

•07 

.08 

.09 

.10 

1. 00 

10.00 

6    « 

.02 

.04 

.06 

.08 

.10 

.12 

.14 

.16 

.18 

.20 

2.00 

20.00 

I  year 

.04 

.08 

.12 

.16 

.20 

.24 

.8 

•32 

.36 

.40 

4.00 

40.00 

s% 

$1 

$2 

$3 

$4 

$5 

$6 

$7 

$8 

$9    ^ 

^10 

$100 

$1000 

4  days 

.00 

.00 

.00 

.00 

.00 

.00 

.00 

.00 

.00 

00 

.06 

•S6 

8    " 

.00 

.00 

.00 

.00 

.00 

.00 

.01 

.01 

.01 

01 

.11 

I. II 

12    " 

.00 

.00 

.00 

.00 

.01 

.01 

.01 

.02 

.02 

02 

.17 

1.67 

16    " 

.00 

.00 

.00 

.01 

.01 

.02 

.02 

.02 

.02 

02 

.22 

2.22 

20    « 

.00 

.00 

.01 

.01 

.02 

.02 

.02 

.02 

•03 

03 

.28 

2.74 

^t  '! 

.00 

.00 

.01 

.02 

.02 

.02 

•03 

•03 

•03 

04 

•34 

lit 

28  " 

.00 

.01 

.01 

.02 

.02 

•03 

•03 

•03 

.04 

04 

•39 

I  mo. 

.00 

.01 

.02 

.02 

.02 

•03 

•03 

.04 

.04 

04 

.42 

4.17 

2    " 

.01 

.02 

•03 

.04 

.04 

.05 

.06 

.07 

.08 

09 

.84 

8.34 

r.: 

.02 

•03 

.04 

•OS 

.06 

•07 

.09 

.10 

.11 

13 

I.2S 

12.50 

•03 

.05 

.08 

.10 

•13 

•15 

.18 

.20 

•23 

25 

2.50 

25.00 

lyr. 

•05 

.10 

•15 

.20 

•25 

•30 

•35 

.40 

•45 

50 

5.00 

50.00 

e% 

$1 

.00 

$2 
.00 

$3 
.00 

u 

.00 

$5 
.00 

$6 
.00 

$7 
.00 

$8 

$9 

$IO 

* 
$100 

$1000 

i^r 

.01 

.01 

.01 

.0; 

.67 

.00 

.00 

.00 

.01 

.01 

.01 

.01 

.01 

.01 

.01 

•13 

1-33 

12  « 

.00 

.00 

.01 

.01 

.01 

.01 

.01 

.02 

.02 

.02 

.20 

2.00 

16  " 

.00 

.01 

.01 

.01 

.01 

.02 

.02 

.02 

.02 

•01 

.27 

2.67 

20  » 

.01 

.01 

.01 

.02 

.02 

.02 

.02 

•03 

•03 

•03 

•33 

3-33 

24  « 

.01 

.01 

,01 

.02 

.02 

.02 

•03 

•03 

.04 

.04 

.40 

4.00 

I  mo. 

.01 

.01 

.02 

.02 

•03 

•03 

.04 

.04 

•OS 

•OS 

•50 

5.00 

2    " 

.01 

.02 

•03 

.04 

•.oi 

.06 

•07 

.08 

.09 

.10 

1. 00 

10.00 

V' 

.02 

'°l 

.05 

.06 

7, 

.11 

.12 

.14 

•IS 

1.50 

15.00 

•03 

.Ob 

.09 

.12 

•IS 

.21 

.24 

.27 

•30 

3.00 

30.00 

lyr. 

.06 

.12 

.18 

.24 

•30 

.36 

.42 

.48 

•54 

.60 

6.00 

60.00 

26t 


APPENDIX 
FOREIGN    COINS 


DENOMINATION 

COUNTRY 

EQUIVALENT 
U.  S.  MONEY 

Spain. 

^54.80 
.698 
.268 

Bolivia 

Crown 

Norway,  Sweden,  Denmark 
British  America , 

Dollar               

1. 00 

« 

Mexico 

.758 

•94 
.193 
•345 
.402 

•193 

5.25 

« 

Spain , ,. 

Greece ^ 

Drachma 

Florin 

Austria 

u 

Netherlands 

Franc 

France,  Belgium,  Switzerland 
Norway,  Sweden,  Denmark  . 
Italy 

20  Kroner 

Lira 

Mark 

German  Empire 

Milrcis  of  1000  reis 

Brazil. 

« 

Portugal 

Spain 

.193 
.912 
.926 
.049 
.044 

'■% 

.70 
.888 

Peso 

Chili 

Cuba 

Piaster 

Egypt 

« 

Turkey 

Pound  Sterling  (sovereign).. 

Rouble  of  100  copecks 

Shilling     

England. 

Russia 

England 

Sol                    

Peru 

Thaler  (3  marks) 

Yen 

Japan 

Explanation  of  the  Currencies  of  the  various  Countries 

Austria  and  Russia.  —  The  paper  currencies  are  con- 
tinually subject  to  important  fluctuations. 

In  France,  Belgium,  Switzerland,  and  Italy,  i 
franc  =  100  centimes.  Germany,  i  mark  =  too  pfennig. 
Holland,  i  florin  or  gulden  =  100  cents.  Norway,  Swe- 
den, and  Denmark,  i  kroner  =  100  ore.  United  States, 
I  dollar  =  100  cents.  Spain,  i  peseta  =  100  centavos.  Aus- 
tria, I  florin  =  100  kreuzer.  Portugal,  i  milreis  =  1000 
reis.  Greece,  i  drachma  ==  100  leptas.  Turkey,  i  piaster 
=  40  paras.    Russia,  i  rouble  =  100  copecks. 

Italian  notes  and  silver  are  not  current  in  France,  Belgium, 
and  Switzerland,  but  the  silver  of  these  countries  passes 
current  in  Italy, 


APPENDIX 


263 


RATE   OF   INCOME   ON   STOCKS 


Purchased  at  the  following  prices  (par  value  being  $100), 
and  bearing  interest  at  the  following  rates :  — 


Pairi 

3  per 

4  per 

5  per 

6  per 

7  per 

8  per 

9  per 

traiCi 

cent 

cent 

cent 

cent 

cent 

cent 

cent 

$50 

6.00 

8.00 

10.00 

12.00 

14.00 

16.00 

18.00 

55 

545 

7.27 

9.09 

10.90 

12.72 

14.55 

16.36 

60 

5.00 

6.67 

8.33 

10.00 

11.66 

13-33 

15.00 

65 

4.62 

6.15 

7.69 

9.23 

10.76 

12.30 

13-85 

70 

4.28 

571 

7.14 

8.57 

10.00 

11.42 

12.85 

75 

4.00 

5.33 

6.66 

8.00 

9-33 

10.66 

12.00 

80 

3-75 

5.00 

6.25 

7.50 

8.75 

10.00 

11.25 

85 

3-53 

4.70 

5.88 

7.05 

8.23 

9.41 

10.58 

90 

3-33 

444 

5-55 

6.66 

777 

8.88 

10.00 

91 

3-30 

4.40 

549 

6.59 

7.69 

879 

9-89 

92 

3.26 

4-34 

543 

6.52 

7.60 

8.70 

9-78 

93 

3.23 

4-30 

5.38 

645 

7.53 

8.60 

9.68 

94 

3.19 

4.26 

5.32 

6.38 

745 

8.51 

9-57 

95 

315 

4.21 

5.26 

6.31 

7.36 

8.42 

9-47 

96 

3.13 

4.17 

S.21 

6.25 

7.29 

8.33 

9-38 

97 

3-09 

4.12 

5-15 

6.18 

7.22 

8.25 

9.28 

98 

3.06 

4.08 

5.10 

6.12 

7.14 

8.16 

9.18 

99 

3-03 

4.04 

5.05 

6.06 

7.07 

8.08 

9.09 

lOI 

2.97 

3.96 

4-95 

5.94 

6.93 

7.92 

8.91 

102 

2.94 

3-92 

4.90 

5.88 

6.86 

7.84 

8.82 

103 

2.91 

3.88 

4.85 

5.83 

6.80 

777 

8.74 

104 

2.88 

3.85 

4.81 

577 

673 

7.69 

8.65 

105 

2.86 

3.80 

476 

571 

6.66 

7.61 

8.57 

106 

2.83 

377 

472 

5.66 

6.60 

7.55 

8.49 

107 

2.80 

374 

4.67 

5.61 

6.54 

7.48 

8.41 

108 

278 

370 

4-63 

5.56 

6.48 

7.41 

8.33 

no 

2.72 

3.63 

4.54 

545 

6.36 

7.27 

120 

2.50 

3-33 

4.16 

5.00 

5.83 

6.66 

7.50 

INDEX 


Abyssinians,  early  money  of,  2. 

Accidents,  to  persons,  damages  for, 
120-121 ;  to  baggage,  122. 

Accounts,  accuracy  of,  important, 
135 ;  auditors  for,  162 ;  books  as 
vouchers,  135 ;  distribution  of, 
134 ;  how  to  keep,  132-134 ;  with 
banks,  27. 

Administrators,appointment  of,  229. 

Age  at  which  infancy  ends,  89. 

Agency,  termination  of ,  171 ;  duties 
of  the  relation,  172;  mercantile, 
99. 

Agents,  by  appointment,  167 ;  by 
appointment  of  minors,  167;  by 
necessity,  167;  by  operation  of 
law,  167  ;  by  ratification,  167 ;  du- 
ties of,  173;  employer's  liability 
for  acts  of,  167 ;  employer's  lia- 
bility for  contracts  of,  1 69-1 71 ; 
employer's  liability  for  violations 
of  law  by,  1 70 ;  interference  with, 
172;  special  kinds  of,  168-169, 
190 ;  story  of  Stephen  Girard's, 
172. 

Animals,  intelligent  accumulations 
by,  I ;  in  Stock  Exchange  phrase- 
ology, 223. 

Ant,  her  thriftiness  praised,  65. 

Apartments,  curious  advertisement 
of,  207 ;  geese  in  German,  206  ; 
Paris  precautions  in  renting,  207  ; 
renting  of,  206;  restrictions  for 
tenants,  206;  rights  of  tenants, 
207. 

Appointment,  agents  by,  167. 

Appraisers,  duties  of,  138  ;  of  city 
property,  184. 


Assessors  of  taxes,  184. 

Assets,  courtesy,  252 ;  defined,  137; 

inventory,  a  list  of,  138 ;  of  banks, 

43,  78. 
Assignment  of  pass  books,  60. 
Attachment  served  for  debt,  102. 
Attorney,  power  of,  bestowed,  i6S. 
Auctioneers  as  agents,  169. 
Auditor  for  treasurer's    accounts, 

162. 

Baggage,  carrier's  liability  for,  123; 
its  condition  noted,  123  ;  may  be 
seized  by  innkeeper  for  debt,  125  ; 
must  be  checked,  122;  personal 
baggage  defined,  123 ;  precautions 
about,  124. 

Balance,  due  on  bills,  105  ;  origin 
of  figure,  133 ;  shown  by  check 
book,  25. 

Bank  account,  at  clearing  house,  46 ; 
balancing  of,  27-29 ;  Carnegie's 
first,  64 ;  how  to  open  one,  14 ; 
overdrawn,  25  ;  political  and  moral 
effect  of,  64  ;  value  of,  63 ;  with 
correspondents  of  a  bank,  47. 

Bank  books,  see  Pass  books. 

Bank  cashiers,  13,  14  ;  as  agents  of 
the  bank,  168. 

Bankers,  Chinese,  4;  earliest  busi- 
ness of,  4;  first  English,  6; 
Florentine,  importance  of  early, 
5,8;  honorable  profession  of,  44; 
projects  and  operations  of,  9. 

Bankrupt,  origin  of  word,  5. 

Banks,  balance  at,  27  ;  checks  of, 
16-30;  collectors  of  capital,  8; 
credit  at,  25,  36;  depositors  at, 


266 


INDEX 


14  ;  derivation  of  word,  5  ;  ex- 
aminers, 43  ;  exchange  at,  49  ; 
evolution  of,  7  ;  failures  of,  5,  23, 
41 ;  functions  of,  4-10 ;  identifi- 
cation at,  11-13;  interest  at,  6, 
57;  in  international  politics,  9; 
in  department  stores,  60  ;  in  news- 
boys' clubs,  60;  in  schools,  61 ; 
manipulation  of  credit  by,  7,  48  ; 
notes  issued  by,  77-78  ;  origin  of 
institution,  4 ;  postal  savings,  63  ; 
profits  of,  32  ;  promissory  notes 
at,  34-36 ;  reserves,  32  ;  safes,  8 ; 
savings  banks,  57-60  j  trust 
company  banks,  61-62. 

Bardi,  bankers  of  Florence,  5. 

Bargains,  248. 

Bed  of  an  indorser  seized,  35. 

Ben  Sira's  view  of  trade,  246. 

Bill  of  lading  for  freight,  156;  col- 
lection of  C.  O.  D.  form  of,  158. 

Bills,  at  Paris  shops,  105  ;  balance 
due  on,  105  ;  collectors  of,  107  ; 
contracts  to  pay,  100 ;  correction 
of,  104,  253 ;  difficult  to  collect, 
100  ;  forms  for,  104  ;  good  effects 
of  paying,  107;  legal  procedure 
for  collection  of,  102  ;  paid  by 
note,  102 ;  partial  payment  of, 
104  ;  receipts  for,  106 ;  summary 
bills,  105  ;  the  parties  concerned 
in,  defined,  loi. 

Bond,  as  fidelity  guarantee,  164; 
given  by  individuals,  165  ;  goods 
shipped  "  in  bond,"  177  ;  provided 
by  special  companies,  165  ;  "  word 
as  good  as  his  bond,"  243. 

Bonds,  Confederate  Government, 
222  ;  convenience  of,  225  ;  coupon, 
220 ;  defined,  219 ;  English  Gov- 
ernment, 225  ;  foreign,  collected 
by  war-ship,  226  ;  have  first  claim 
on  assets  of  company,  220 ;  issuers 
of,  220;  not  personal  baggage, 
123 ;  personal  property,  225  ;  pin- 


holes in,  225 ;  registered,  220  ;  sold 
by  brokers,  222. 

Bookkeeping,  double  and  single  en- 
try, 131 ;  how  to  balance  books, 
133;  importance  of,  130;  terms 
used  in,  131  ;  the  ideal  in,  136; 
the  simple  rule  for,  illustrated, 
132. 

Books,  borrowers  of,  165  ;  pirated 
editions  confiscated,  148 ;  rates 
for  sending  by  mail,  148. 

Borrowers,  downward  steps  of,  41 ; 
large  corporations  as,  39 ;  of 
books  and  property,  165;  Polo- 
nius'  advice  about,  40 ;  on  mort- 
gage, 200;  "servant  to  lender," 
40. 

Boundaries,  old  method  of  describ- 
ing, 193;  curious  marks  for,  193; 
modem  descriptions  of,  192. 

Brokers,  as  agents,  168;  custom- 
house, 159;  stock  and  bond  deal- 
ers, 222. 

Building  associations,  factory  work- 
ers in,  196;  houses  purchased 
through  them,  196. 

Business,  courtesy  in,  250-256; 
ethics  of,  242-246 ;  fundamentals 
of,  242 ;  good  habits  of,  247  ;  loy- 
alty in,  250  ;  previous  preparation 
for  transacting,  256;  sense  of 
values  in,  247;  the  high  stan- 
dard for,  257. 

Canceled  checks,  a8 ;  notes,  36. 

Canoes  in  exchange,  2. 

Canterbury,  archbishop's  story,  45. 

Capital,  banks  collect  the  idle,  8; 
circulation  of,  31. 

Carrier,  common,  defined,  118  ;  du- 
ties of,  118,121  ;  when  freight  is 
sent  over  two  lines,  155. 

Cattle  as  money,  3. 

Chauffeurs  as  agents,  170. 

Check,  baggage,    a    contract,    84; 


INDEX 


267 


number  on  it  should  be  noted, 
124;  punched  to  indicate  condi- 
tion of  baggage,  123. 

Check  book,  balancing  of,  29  ;  stub 
of,  17,  18  ;  use  of,  book,  16. 

Checks,  bank,  altered,  19  ;  canceled, 
28 ;  "  carte  blanche,"  20  ;  certi- 
fied, 25,  26,  168  ;  clearing  house 
treatment  of,  46 ;  Cleveland's 
small  one,  20  ;  dates  on,  18  ;  defi- 
nition of,  16,47;  form  for,  17-21 ; 
"honored,"  25;  indorsement  of, 
22-23  ;  lost,  protection  against, 
24 ;  names  mis-spelled  on,  22  ; 
numbers  on,  17;  origin  of  word, 
16 ;  payment  stopped  on,  24 ; 
protested,  24,  25  ;  "  raised,"  19  ; 
receipts  for  bills,  27,  106;  re- 
turned, 27-28 ;  signature  on,  21, 
22  ;  substitute  for  money,  29  ;  un- 
returned,  29 ;  uses  of,  26,  27 ;  of 
deceased  persons,  238. 

Chinese,  early  bankers,  4 ;  story  of 
their  sensitiveness,  253. 

Claims  for  damages,  time  limit  of, 

153,  157. 

Clearing  houses,  46. 

Cocoa  as  money,  2. 

Codicil,  defined,  239;  requirements 
for,  239. 

Collateral  security,  pass  books  as, 
60 ;  stocks  and  bonds  as,  33. 

C.  O.  D.,  express  by,  153;  freight 
by,  157- 

Contracts,  canceling  of,  95  ;  com- 
mon forms  of,  81,100;  definition 
of,  82  ;  failure  to  perform,  86,  96 ; 
interferers  with  the  execution  of, 
95 ;  illegal,  not  enforcible,  90 ; 
with  murderers,  90 ;  in  restraint 
of  trade,  91 ;  olatained  by  fraud, 
force,  or  deceit,  92-95  ;  legal,  en- 
forcible,  82-86 ;  (a)  by  agreement 
to  conditions  with  express  com- 
panies, 150;  with  freight  compa- 


nies, 156 ;  with  hotels,  85  ;  by  of- 
fered rewards,  85  ;  with  railroads, 
83 ;  with  schools,  85 ;  with  tele- 
graph companies,  84  ;  (d)  unwrit- 
ten, with  servants,  82 ;  with  street 
cars,  83  ;  legal  makers  of,  87,  88 ; 
made  by  drunkards  and  lunatics, 
90  ;  made  by  legal  infants,  88-90; 
made  by  married  women,  88  ;  pay- 
ment in  fulfillment  of,  96 ;  summa- 
ry of  law  of,  86  ;  voidable,  89,  90. 

Conversion,  defined  and  illustrated, 
210. 

Coromandel  shore,  money  on,  2. 

Corporations,  stock  companies,  216 ; 
controlled  by  majority,  217;  de- 
fined, 216;  "have  no  souls,"  217; 
issue  bonds,  219;  over-capitali- 
zation of,  218  ;  bondholders'  claims 
on  assets  of,  220 ;  stockholders  in, 
217;  tax  on,  182. 

Counterfeits  as  money,  74,  75  ;  crime 
of  making,  80. 

Coupons  on  bonds,  220. 

Court-martial  for  debt,  99. 

Credit,  buying  on,  97-98 ;  bookkeep- 
ing term,  131 ,  clearing  house, 
46 ;  damaged  by  protested  notes, 
35  ;  disastrous  effects  of,  98-99 ; 
letter  of,  see  Letter,  51-56  ;  plant- 
er's use  of,  97 ;  probable  origin  of 
custom,  97 ;  system  of  commerce, 
44  ;  term  defined,  98  ;  transferred 
by  drafts,  38,  48 ;  Venetian  mer- 
chants' credit,  7 ;  why  extended 
to  people,  98. 

Creditors,  abbreviation  for  word, 
131 ;  defined,  loi ;  may  seize  pro- 
perty, 102,  195. 

Cromwell  and  the  bankers,  7. 

Customhouses,  declarations  at,  how 
made,  179;  frauds  at,  178-179; 
goods  sent  in  bond  to,  177;  on 
border  lines,  177;  seized  by  for- 
eign powers,  226. 


268 


INDEX 


Damages,  caused  by  the  "act  of 
God,"  123,  126;  for  enticing  ser- 
vants of  others,  113  ;  for  express 
packages,  152,  153;  for  freight, 
157  ;  for  registered  mail,  144  ;  for 
personal  injuries,  119-121;  time 
limit  for  claims  of,  153,  157. 

Dates,  as  money,  2. 

Dates,  on  checks,  importance  of, 
18;  on  deeds,  194;  on  wills,  232. 

Dead-Letter  Office,  149. 

Debit,  bookkeeping  term,  131. 

Debt,  court-martial  for,  99  ;  Edward 
Ill's  to  Florentines,  5 ;  foreign 
paid  in  gold,  50 ;  imprisonment 
for,  99,  103;  informal,  is  bind- 
ing, 103;  in  law  is  a  contract,  100 ; 
"I.  O.  U.,"  103;  "of  honor," 
103  ;  the  permissible  debt,  108. 

Debtors,  abbreviation  for  word,  104, 
131 ;  army  and  navy,  99;  college 
men,  99;  defined,  loi ;  Dick 
Swiveller's  type,  loi. 

Debts,  collection  of  at  law,  102, 
103 ;  Drago  doctrine  for  foreign, 
227;  limits  for  payment  of  in 
coin,  75;  outlawed,  103;  to  ser- 
vants, 99,  102, 

Deeds  for  property,  are  contracts, 
84  ;  date  unnecessary,  194  ;  essen- 
tials of,  191-194;  mortgage,  200; 
not  given  until  payment  is  made, 
196;  quitclaim,  194;  should  be 
recorded,  195 ;  trust,  201 ;  war- 
ranty, 194 

Denver,  former  rate  of  interest  in, 

39. 

Depositors,  in  panic,  41 ;  how  to 
become,  14. 

Deposits,  books  for,  15  ;  how  to 
make  at  banks,  14;  forfeited,  191 ; 
interest  paid  on,  6,  57;  percent- 
age of  to  be  kept  in  cash,  32; 
sent  by  mail,  23;  what  may  be 
used  for,  15,  2^,  70. 


Detriment,  legal,  defined,  86 ;  illu* 
trated,  87. 

Dick  Swiveller,  story  of,  101. 

Discount  on  checks,  48 ;  of  promis- 
sory notes,  37. 

Dispossess,  landlord's  right  to,  209. 

Dividends  on  stocks,  215,  218. 

Division  of  labor,  2. 

Doll's  House,  Ibsen's,  18. 

Drafts,  collections  made  by,  38 ;  for 
emergencies,  68  ;  foreign,  49-52; 
New  York,  how  obtained,  47 ; 
overdrafts,  25  ;  sight,  form  and 
acceptance  of,  37,  38. 

Drago  doctrine,  227. 

Drunkards  may  be  ejected,  119; 
may  not  make  contracts,  90 ;  un- 
fit guests,  126. 

Duress,  contracts  obtained  under, 
92 ;  illustrated,  94. 

Earnest  money,  197. 

Edward  II's  use  of  customs  rev©. 
nues,  176. 

Edward  Ill's  foreign  debts,  5. 

Embezzlement,  security  against, 
165. 

Employees,  domestic,  extra  work  of, 
112;  German  regulation  of,  114, 
115;  in  other  occupations,  116; 
married  women's  wages,  113;  re- 
commendations, 113  ;  time  or  ser- 
vice hired,  116;  who  refuse  dis- 
missal, 1 12 ;  wages  a  claim  on  an 
estate,  115. 

Employers,  of  domestic  labor,  109 ; 
adverse  recommendations  by, 
113;  duties  of.  III ;  legal  obliga- 
tions of,  no;  legal  equality  of 
employee  and,  116;  liability  for 
agent's  acts,  169;  liability  for 
conduct  and  extravagance  of  ser- 
vants, 112;  loyalty  to,  required, 
250 ;  obligations  of  German  law 
for,  115 ;  protection  of  employees 


INDEX 


269 


by,  116;  who  entice  others'  ser- 
vants, 113;  the  real,    iii. 

Entail  of  estates,  limited  in  the 
United  States,  236;  in  England, 
236. 

Equity  of  redemption,  183. 

Estate,  charges  against,  237;  dis- 
position of,  230;  entailment  of, 
236  ;  widow's  share  in,  235. 

Ethics,  general,  of  the  community, 
247  ;  Hebrew,  244 ;  two  kinds  of, 

243- 

Exchange,  a  transference  of  credit, 
38,  48  ;  domestic,  45-47 ;  foreign, 
48-50  ;  forms  of,  49  ;  fourth  func- 
tion of  a  bank,  8;  high  or  low, 
50 ;  how  obtained,  49 ;  money  a 
medium  of,  2 ;  reputation  of 
London,  51. 

Exchequer,  meaning  of  word,  16. 

Executor,  accountable  for  inven- 
tory, 237  ;  duties  of,  238;  may  be 
called  to  account,  239  ;  must  pro- 
bate will,  237 ;  the  qualifying  of, 

237- 

Executrix,  defined,  234 ;  her  duties, 
238 :  married  women  not  always 
eligible,  237. 

Expenses,  classification  of,  134-135. 

Express  companies  require  identifi- 
cation for  money  orders,  12 ;  the 
first  company,  140;  their  financial 
guarantee,  149  ;  packages  sent  by, 
149-15 1 ;  where  liability  ceases, 
151. 

Extra  work  for  domestics,  112; 
fare  on  trains,  121. 

Factors,  as  agents,  i6g ;  the  cotton 
planter's  bankers,  97. 

Failures  of  banks,  begun  by  a 
"  run,"  42  ;  far-reaching  effects  of, 
43  ;  means  taken  to  prevent,  43. 

"  Farming  taxes,"  in  Roman  Em- 
pire, i86  J  in  Turkish  Empire,  187. 


Fee  simple,  property  in,  231. 

Figures,  advantage  of  well-made, 
136 ;  their  accuracy  essential,  137. 

"  Filthy  lucre,"  73. 

Flaws  in  title,  191. 

Foreclosure  of  mortgage,  200 ;  by 
trustee's  sale,  201 ;  procedure  for, 
202. 

Foreign  coins,  list  of,  262 ;  drafts, 
55  ;  mail  regulations,  145-148. 

Fraud,  contracts  obtained  by,  92 ; 
defined  and  illustrated,  93,  94 ;  in 
wills,  240. 

Freight,  bill  of  lading  for,  156 ;  car- 
load lots,  155  ;  carrier's  responsi- 
bility for  claims  for  damages,  157 } 
C.  O.  D.,  how  sent,  157-158;  F. 
O.  B.  explained,  158;  in  custom- 
houses, 159;  necessity  for  good 
packing,  154 ;  public  carters  of, 
156;  released,  154;  should  have 
route  directions,  155;  trunks  sent 
by,  154, 

French  Revolution  and  taxes,  175 ; 
lessons  taught  royalty  by,  225. 

Garnishee,  debts  collected  by,  102 ; 
government  salaries  exempt  from, 
102. 

German  apartment  regulations,  206 ; 
domestic  service  regulations,  114, 
115. 

"Get-rich-quick"  propositions,  245. 

Gifts  sent  in  foreign  mails,  146. 

Glass  sent  by  mail,  rule  for,  143. 

Gold,  bankers  accumulate,  51  ; 
foreign  debt  payment  in,  50 ;  hid- 
ing-places for,  3, 4  ;  how  exported, 
50 ;  interest  on  public  debt  paid 
in,  'JT,  universally  desired,  i,  3. 

Gold  standard  explained,  50,  76. 

Golden  Rule,  in  business,  94  ;  David 
Harum's  mercantile  version  of, 
242. 

Goldsmiths,    aided    Cromwell,    7; 


270 


INDEX 


first  bankers  in  England,  6 ;  "the 
Mystery  of,"  6. 

Goods,  purchased,  loss  of,  197 ; 
purchased  on  credit,  resold,  198. 

Grace,  days  of,  34. 

Guarantee  of  indorsement,  13. 

Guests,  at  hotels,  differ  from  board- 
ers, 127-128;  must  pay  for  rooms 
engaged,  126;  protection  of  pro- 
perty of,  127;  sick,  may  be  ejected, 
127;  unfit  or  undesirable,  126. 

Habits,    good    ones    necessary   in 

business,  242-247. 

Half-crown,  the  marked,  story  of,  45. 

Harold  of  England's  broken  con- 
tract, 94-95. 

Heirs,  real  property  passes  to,  229 ; 
the  term  defined,  229. 

Hoardings  of  animals  and  man,  i ; 
hiding-places  for,  3,  4. 

Holidays,  legal,  notes  not  due  on, 
34  ;  dates  vary  in  states,  34. 

Honesty,  insurance,  164  ;  law,  243  ; 
principle  illustrated,  245-247 ; 
Stevenson's  idea  of,  244. 

Honor,  debts  of,  103  ;  defined,  243  ; 
its  requirements,  244. 

Hotels,  Arkansas  statute  concern- 
ing, 128;  exemptions  from  lia- 
bility, 127-128  ;  guests  and  board- 
ers, 128 ;  legally  termed  inns, 
125  ;  liability  for  property  of 
guests,  127  ;  may  eject  sick  guests, 
127;  may  seize  baggage,  125; 
rooms  engaged  at,  126;  undesir- 
able guests  at,  126. 

Huckster,  quotation  about,  246. 

Ibsen,  illustration  from,  18. 

Identification  at  banks,  11,  13;  dog 
Tray  story,  13  ;  letter  of  credit 
used  for,  54 ;  ways  of  securing, 
II-I2-,  waived,  67. 

Illicit  distilleries,  180. 


Income  tax,  181. 

Indians,  notes  of,  36. 

Indorsement  of  checks,  22-23  >  '^^ 
blank,  22 ;  in-  full,  23  ;  guaran- 
teed, 13  ;  to  be  sent  by  mail,  23  ; 
responsibility  for,  25. 

Indorsement  of  money  orders,  70 ; 
of  notes,  22  >  liability  for,  35 ; 
the  warning  of  the  Wise  Man,  35. 

Indorser  of  note,  33  ;  form  of  no- 
tice to,  35;  risk  taken  by,  35. 

Infants,  legal,  age  of,  in  different 
states,  89  ;  contracts  of,  S8,  89. 

Inheritance  tax  in  New  York,  181. 

Inns,  see  Hotels. 

Insolvent,  explanation  of  term,  237. 

Installments,  buying  on,  198  ;  credit 
houses  sell  on,  199;  hardships 
resulting  from  unpaid,  199. 

Interest,  at  saving  banks,  57,  58; 
called  usury,  6 ;  defined,  38 ; 
extortionate,  40 ;  in  estates  for 
life,  231 ;  legal  rate  of,  39 ;  lost, 
58;  on  coupon  bonds,  221;  on 
deposits,  5,  32;  on  public  debt, 
y7;  on  registered  bonds,  221; 
paid  by  early  goldsmiths,  5  ;  rules 
for  computing,  260;  tables  for, 
261. 

Interference  with  execution  r-f  con- 
tracts, 95. 

Intestate,  definition  of  term,  228 ; 
division  of  property  of  deceased, 
229. 

Intoxicated  person's  notes,  36. 

Inventory  checks  extravagance, 
139 ;  excecutor  accountable  for 
its  values,  237  ;  how  to  make  one, 
137-138 ;  in  bookkeeping  an  as- 
Set,  138  ;  should  be  filed  with  will, 
237 ;  when  necessary  to  take,  139. 

Ionian  islands,  early  money  of,  2. 

Jeremiah,  prophet,  quotation  from, 
102. 


INDEX 


271 


Jim  Crow  cars,  120, 
Joint-stock  companies,  216;   stock- 
holders' liability  for  debts  of,  217. 

Kin,  next  of,  229;  property  inher- 
ited by,  229,  240. 


Labor,  division  of,  2. 

Lading,  bill  of,  156;  for  C.  O.  D. 
freight,  158, 

Land,  increase  in  value  of,  211  ; 
Umits  of  when  bought,  193  ;  "  the 
land  remains,"  213. 

Landlord,  disobliging,  story  of,  205; 
improvements  revert  to,  208 ;  may 
be  sued  for  unmade  repairs,  205  ; 
responsibility  for  tenant,  205  ; 
right  to  impose  restrictions,  206, 

Lease,  defined,  203 ;  Duke  of  Bed- 
ford's, 211  ;  for  apartments,  206  ; 
improvements  under  lease  revert 
to  owner,  208,  211  ;  parties  to, 
203  ;  requirements  of,  203-204 ; 
what  it  shall  include,  204. 

Legal  tender,  explanation  of  term, 
75  ;  limits  of  small  coin  as,  75  ; 
national  currency,  Tj ;  silver  and 
gold  certificates,  76 ;  Treaisury 
notes,  76. 

Lenders,  banks  the  chief,  9,  31 ;  bor- 
rowers servants  to,  40  ;  Shylock  a 
type  of,  40  :  victims  of,  39,  40. 

Letter  of  credit,  domestic,  53  ;  for- 
eign, form  of,  261  ;  how  ob- 
tained and  used,  51-52;  identifi- 
cation by,  54-55  ;  lost,  instruc- 
tions about,  56  ;  social  uses  of,  54  ; 
when  surrendered,  55. 

LiabiUties,  defined,  137 ;  of  banks, 

43- 
Liability  of  borrowers,  165  ;  of  em- 
ployers for  employees,  116;  of 
express  companies,  152  ;  for  en- 
dorsed checks,  23  ;  for  endorsed 
notes,   35 ;    of    government    for 


registered  mail,  144 ;  of  principals 
for  agents,  169-170;  of  railroads, 
1 19-123  ;  of  stockholders  in  joint 
companies,  217. 

Liquids  by  mail,  how  sent,  142. 

Loan  associations,  196;  at  bank, 
see  Notes. 

London  credit,  vaRie  of j  51 ;  ex- 
change, 49,  52. 

Lost,  articles  sent  on  approval  and, 
164 ;  tickets,  responsibility  for, 
163;  letter  of  credit,  56. 

Loyalty  a  business  requisite,  250. 

Lunatics,  may  not  sign  deeds,  192  ; 
not  legal  contractors,  90. 

Mail,  checks  sent  by,  how  indorsed, 
23  ;  foreign,  145-148  ;  money  sent 
by,  69,  71 :  packages  sent  by,  142- 
149;  registered,  143-144- 

Margin,  stocks  bought  on,  223. 

Married  woman,  contract  ability  of, 
88  ;  her  husband  must  sign  deeds, 
194;  may  not  be  a  witness  in 
Louisiana,  236;  wages  of,  113; 
will  of,  230. 

Marshalsea,  prison  for  debt,  99 ;  Mr. 
Micawberin,  103. 

Memorandum  of  sale,  197,  198; 
when  necessary,  199. 

Mercantile  agencies,  business  rating 
from,  99. 

Merchandise,  precautions  in  send- 
ing, 145 ;  rates  for  sending  by 
mail,  T42  ;  unmailable  sorts,  142. 

Merchants,  Ben  Sira's  comment  on, 
246;  integrity  of  English,  51; 
method  of  payment  for  foreign 
goods,  48. 

Mexico,  money  in  aboriginal,  2. 

Micawber,  Mr.,  and  his  debts,  io2. 

Misrepresentation,  contracts  ob- 
tained by,  92  ;  illustrations  of,  93. 

Mistakes  in  bills,  104,  253. 

Money  as  legal  tender,  75 ;  checks  a 


272 


INDEX 


substitute  for,  29 ;  counterfeit,  74, 
75 ;  Confederate,  79 ;  damaged, 
how  redeemed,  72  ;  early  forms 
of,  2 ;  fractions  redeemable,  72 ; 
guaranteed  by  bonds,  Tj,  79 ; 
hiding-places  for,  3,4;  how  car- 
ried, 72,  73 ;  how  to  deposit  in 
bank,  14 ;  how  to  get  in  emer- 
gency, 66-68  ;  invention  of,  2  ;  is- 
sued by  banks,  ']^  ;  medium  of  ex- 
change, 2;  paper,  utility  of,  "JT  \ 
Revolutionary,  80 ;  soiled,  how  de- 
stroyed, 73,  74 ;  table  of  foreign 
coins,  264  ;  value  depends  on  the 
issuer,  79  ;  ways  of  sending,  69 ; 
what  it  stands  for,  66. 

Monpy  orders,  postal,  deposit  of,  70  ; 
how  cashed,  70,  71 ;  how  obtained 
and  sent,  69  ;  indorsement  of,  70 ; 
lost,  what  to  do,  70 ;  payable  to 
self,  70 ;  redemption  of,  70. 

Monroe  doctrine,  227. 

Moonshiners,  180. 

Mortgage,  a  deed,  200 ;  called 
"  deed  of  trust,"  200 ;  chattel  for 
furniture,  199  ;  derivation  of  term, 
202 ;  first,  201  ;  foreclosure  of, 
200,  202 ;  precautions  necessary 
in  taking,  201;  release  for,  201; 
second,  201 ;  should  be  recorded, 
201 ;  trustees  for,  201. 

Mosaic  code  commands  neighbor- 
liness,  87. 

Mulberry  slips  as  money  on  Long 
Island,  3. 

Necessaries  of  life,  defined,  90. 

Negotiable  paper,  37. 

Neighborliness,  acts  of,  87. 

New  England,  shells  used  for  money 
in  early,  33 ;  quit-claim  deeds  usu- 
ally given  in,  194. 

Non-conformists  object  to  tithes, 
186. 

Notes,  bank,  ^^^  78 ;  Treasury,  76. 


Notes,  promissory,  8,  33 ;  bonds  are, 
219  ;  canceled,  36 ;  collected  by 
banks,  36 ;  definition  of,  34 ;  dis- 
counted, 37  ;  form  for,  33  ;  how 
given,  33 ;  illegal  are  uncollect- 
able,  36 ;  Indian's  notes,  36  ;  in 
payment  of  bills,  102 ;  interest 
on,  34 ;  negotiable  paper,  37;  note 
shavers,  39  ;  obtained  by  fraud, 
36,  92  ;  of  hand,  37  ;  present  value 
of,  37  ;  protested,  notice  of,  34- 
35;  when  due,  34;  when  lost, 
stolen,  or  destroyed,  38. 

Notice  of  discharge,  no. 

Notice  of  protest,  of  checks,  24  ;  of 
notes,  34. 

Nuncupative  will,  239. 

Occupancy,  adverse,  title  by,  192. 
Olive  oil  as  money,  2. 
Oral  wills,  239. 
Over-capitalization,  218. 
Overdrawn  accounts,  25. 

Packages,  («)  by  express  C.  0.  D.  or 
collect,  153  ;  must  be  in  good  con- 
dition, 150;  by  express  must  be 
valued,  150 ;  should  be  examined 
before  receipt  is  signed,  151 ;  un- 
delivered, and  marked  "  collect," 
154 ;  (*)  by  freight,  154-159  ;  C. 
O.  D.,  15  7 ;  receipt  must  be  kept, 
157 ;  (<^)  by  mail,  directions  for 
sending,  142-143 ;  in  Parcels-Post, 
146-148 ;  inscriptions  allowed, 
145 ;  undelivered,  fate  of,  148- 
149. 

Panic,  bank,  41,  58  ;  in  stock  mar- 
ket, 224. 

Par,  advantage  of  buying  below, 
222  ;  term  defined,  221. 

Parcels  Post,  145  ;  size  of  packages 
for,  147;  weight  of  parcels,  146; 
where  packages  may  be  sent  by, 
147. 


INDEX 


273 


Partial  payment,  houses  bought  on, 
195  ;  of  bills,  104. 

Pass  books,  are  receipts  from  bank, 
15  ;  assignment  of,  60;  balancing 
of,  27,  28 ;  found  among  beggar's 
rags,  60;  legal  evidence,  15  ;  lost 
books  of  savings  banks,  58,  59 ; 
of  Penny  Provident  Society,  63 ; 
security  for  loans,  60. 

Passengers,  definition  of,  119;  en- 
titled to  seats,  123  ;  ejected  from 
trains,  119 ;  protected  from  in- 
sult, 120;  railroad's  right  to  re- 
ject, 119;  railroad's  liability  for, 
121 ;  unfit,  119. 

Patti,  rights  of  her  French  husband, 
88. 

Paying  bills,  necessity  for,  loi ;  by 
note,  102;  "  through  the  nose," 
story  of,  100. 

Penny  Provident  Society,  62-64. 

Personal  property,  bequeathed  by 
testament,  229 ;  definition  of,  189 ; 
precautions  to  be  taken  when 
buying,  197. 

Peruzzi,  bankers  of  Florence,  5. 

**  Pin  holes,"  use  of  phrase,  225. 

Poll  tax,  a  Jewish  custom,  185 ; 
purpose  of  levying,  185. 

Possession  by  adverse  occupancy, 
192  ;  necessary  to  title,  197. 

Postal  domains  of  United  States, 
145 ;  domestic  rates,  where  appli- 
cable, 146  ;  money  orders,  69-71 ; 
savings  banks,  63 ;  Union  of 
nations,  141, 147  ;  packages,  141- 
149. 

Primitive  man,  i,  2. 

Printed  matter  in  mails,  146. 

Probate  Court,  234  ;  will  presented 
for,  234;  witnesses  must  be 
present,  234. 

Promissory  notes,  33-39. 

Property,  at  Atlantic  City,  211 ; 
borrowed,  165-166  ;  kinds  of,  189 ; 


lease  of,  203-204;  mortgage  of, 
200-202 ;  of  other  people,  161- 
164  ;  rent  of,  203,  205,  209  ;  sale 
of  personal,  197-198  ;  sale  of  real, 
191-195. 

Protest  of  bank  checks,  24-25  ;  of 
notes,  when  made,  34  ;  necessary 
for  collection  at  law,  34 ;  notice 
of,  sent,  34,  35. 

Proverbs,  quotations  from  Book  of, 
35,  40,  65. 

Proxy  for  stockholders,  217. 

Quitclaim  deeds,  194. 

Railroads,  duties  as  common  car- 
riers, 118  ;  "  Jim  Crow  "  cars  on, 
120 ;  liable  for  death  of  passen- 
gers, 120  ;  liable  for  some  delays, 
121  ;  liable  for  servants'  conduct, 
118,  120  ;  must  furnish  seats,  122 ; 
not  liable  for  some  injuries,  121 ; 
passengers  defined,  119;  respon- 
sibility for  baggage,  122-123; 
responsibility  for  stolen  property, 
123 ;  right  to  reject  passengers, 
119. 

Ratification,  agents  by,  166;  cau- 
tions concerning,  167. 

Real  estate,  agents  for,  166,  190; 
as  security  for  loans  or  bond, 
33,  210;  transfer  of,  190;  use  of 
term,  189. 

Real  property,  deed  of  sale  for,  191 : 
defined,  189 ;  devised  by  will, 
229 ;  title  passes  to  heirs,  229; 
title  to,  191,  195. 

Receipts,  anecdotes  about,  107 ;  as 
vouchers,  161 ;  checks  as,  27, 
106  ;  correct  form  for,  106  ;  coun- 
ter receipts,  57  ;  for  express  pack- 
ages, 151 ;  for  money  orders,  70; 
for  registered  mail,  144 ;  pass 
books  as,  15  ;  should  always  be 
required,  107 ;  should  be  kept,  lod 


274 


INDEX 


Registered  xnail,  144 ;  damages  for, 
144 ;  may  be  traced,  143 ;  sent 
from  abroad,  144. 

Release  for  freight,  154 ;  from  mort- 
gage, 201. 

Rent,  defined,  203 ;  in  storage  ware- 
houses, 209  ;  of  furnished  rooms 
in  Paris,  209;  of  horses,  210 ; 
of  movable  property,  210  ;  should 
cover  .costs  and  interest,  212  ;  un- 
paid, and  penalty  therefor,  208, 
209. 

Revenue,  internal,  taxes  of,  179; 
money  advanced  on,  7  ;  of  govern- 
ment, raised  by  taxes,  16. 

Revolution,  American,  money  of, 
80  ;  French,  taxes  in,  175  ;  lessons 
from,  225 ;  South  American,  9, 
227. 

Rice  as  money,  2. 

Road  tax,  182. 

Robber  barons,  6. 

Rob  Roy's  purse,  4. 

Rock  salt  used  as  money,  2. 

Russian  money,  early  form  of,  2. 

Safe  deposit  boxes  for  valuables,  62. 

Sale,  of  property,  considerations  for, 
190  ;  conditions  of,  190-191 ;  deeds 
for  real,  190-195  ;  earnest  money 
for,  197  ;  memorandum  of,  198; 
personal,  when  is  sale  complete, 
197. 

Saturday,  early  closing  of  banks  on, 
26. 

Savings  banks,  accounts  at,  57  ;  how 
funds  are  withdrawn,  58  ;  identifi- 
cation unnecessary,  13  ;  in  news- 
boys' clubs,  60 ;  interest  on  de- 
posits at,  57,  58;  late  hours  for, 
60  ;  pass  books  of,  58,  59 ;  postal, 
63  ;  thrift  encouraged  by,  57. 

Scotch  woman,  story  of,  78. 

Securities  held  by  banks,  42,  225. 

Security  for  loans,  collateral,  23)  60 ; 


pass  books  as,  60 ;  personal,  39 ; 
real  estate,  39. 

Seizin,  livery  of,  190  ;  William  the 
Conqueror's  use  of,  190. 

Servants,  as  agents,  112,  169  ;  do- 
mestic, see  Employer,  109-113; 
in  Germany,  record  of,  114. 

Sheep  as  money,  3. 

Sheriff  seizes  property  for  debt,  102 ; 
sells  it  for  taxes,  183. 

Ship  money  tax,  177. 

Ship's  masters  as  agents,  169. 

Shylock,  a  term  of  contempt,  40. 

Sicily,  debts  of  king,  5. 

Siding,   railroad,  for  private  firms, 

^55,159- 

Sight  drafts,  accepted,  38  ;  collec- 
tions made  by,  38  ;  credit  trans- 
ferred by,  38 ;  for  emergencies, 
68  ;  form  of,  37 ;  may  be  de- 
posited, 38. 

Sign  manual,  use  of,  21. 

Signature,  should  be  legible,  21  ;  of 
wills,  232.;  witnesses  to,  234. 

Sixpence,  the  nimble,  31. 

Sleeping  cars,  property  lost  on,  123. 

Smuggling,  by  false  registration, 
178;  by  undervaluation,  179; 
penalty  for,  178;  public  revenues 
diminished  by,  181. 

South  Sea  Bublsle,  245. 

Sovereignty  of  state,  80,  182. 

Speculating  on  margin,  227. 

Statement  envelopes,  28. 

Stock  companies,  see  Joint-stock 
companies. 

Stockholders,  liabilities  of,  217,  227; 
manage  the  business  by  officers, 
217;  original,  215;  proxies  for 
votes,  217. 

Stock  market, bulls,  bears,  and  lambs 
of,  223  ;  foreign,  224  ;  how  prices 
are  influenced  on,  222 ;  Wall 
Street  our  great  centre,  224. 

Stocks,  are  personal  property,  225 ; 


INDEX 


2/5 


at  par,  221;  common,  218;  defi- 
nition of,  2*4,  226 ;  gilt-edged, 
219;  how  value  is  found,  249; 
"I  take  no  stock,"  use  of  phrase, 
227;  preferred,  217;  rate  of  in- 
come on,  263  ;  subscriptions  for, 
215,  216;  "watering,"  218. 

Stub,  of  check  book,  1 7 ;  entry  for 
balanced  account,  29  ;  proper  way 
to  keep,  18  ;  in  receipt  book,  r62. 

Summary  bill,  105. 

Surety,  warning  against,  35, 

Survey,  Coast  and  Geodetic,  192. 

Tariff,  defined,  177;  purpose  of, 
177-178. 

Taxes,  Adam  Smith  authority  on, 
175  ;  city,  how  levied,  183,  184 ; 
county,  road,  182  ;  customs  du- 
ties, 177;  defined,  176;  evasion 
of,  180,  184;  "farmed,"  186; 
furnish  government  revenue,  176  ; 
Indirect,  176-177;  internal  reve- 
nue, 180 ;  old  Roman  gatherers 
of,  186 ;  origin  of,  174;  poll  taxes, 
j86;  professional,  182;  some 
historical,  175;  state,  181-182; 
swearing  off  taxes,  184;  tithe, 
church  tax,  186  ;  title  acquired  by 
paying,  183  ;  unpaid,  the  penalty 
for,  183 ;  ways  of  paying,  182, 
187. 

Tea  as  money,  2. 

Tenant,  dispossessing  a,  209  ;  notice 
to  bad,  207  ;  not  justified  in  un- 
authorized expenses,  205 ;  obliga- 
tions of,  204-206  ;  rights  of,  207  ; 
right  to  improvements,  207. 

Testament,  legal  age  for  making, 
230;  personal  property  bequeathed 
by,  229. 

Testator,  defined,  233. 

Third  party,  the  innocent,  171. 

Thrift,  encouraged  by  savings  banks, 
57;  in  animals  illustrated,  i,  65. 


Tithe,  church  tax,  186  ;  paid  in  to- 
bacco, 3. 

Title,  by  adverse  occupancy,  192 ; 
clouded,  192 ;  Dr.  Watts's  "  title 
clear,"  213  ;  flaws  in,  191  ;  insur- 
ance companies  for,  191  ;  passes 
to  heirs,  229;  perfect,  151;  pos- 
session jjerfects,  197;  to  run 
down,  191. 

Tobacco  as  money  in  early  Virginia, 

3- 

Travelers,  as  hotel  guests  without 
baggage,  125  ;  baggage  of,  122- 
123;  damages  for  stolen  property, 
123  ;  injuries  to,  120,  121  ;  pre- 
cautions for  prospective,  124-125 ; 
proper  behavior  of,  124  ;  property 
must  be  safe,  127  ;  protected  by 
common  carrier,  119;  right  to  a 
seat,  122  ;  right  to  damages,  120- 
123  ;  should  report  insults,  120. 

Treasurer,  duties  of,  161 ;  examina- 
tion of  accounts  of,  162  ;  responsi- 
bility for  funds,  163. 

Trunks,  by  freight,  155  ;  se«  also 
Baggage,  122. 

Trust  companies,  facilities  offered 
by,  63 ;  functions  of,  61 ;  legal 
limitations  of,  62. 

Trust  deeds,  201, 

Trustee,  debts  collected  by,  loi  ; 
may  foreclose  mortgages,  aoi  ; 
property  left  to,  239  ;  should  have 
specific  directions,  239. 

Undue  influence,  contracts  obtained 

by,  92  ;  illustrated,  95. 
Unfit  passengers,  119 ;  hotel  guests, 

126. 
Usury,  first  meaning  of  term,  6,  39 ; 

men  who  practice,    39 ;    present 

use  of  term,  39 ;  victims  of,  40. 

Vade  mecum,  letter  of  credit  as,  56. 
J  Value,   how  determined,  247-249 ; 


276 


INDEX 


in  making  inventories,  138;  of 
gold  coin,  51  ;  "value  received," 
use  of  term,  33. 

Venice,  Republic  of,  its  credit,  7. 

Villari,  quotation  from,  6. 

Virginia,  tobacco  used  as  money  in, 

3- 
Vouchers,  account  books  as,  135 ; 
for  accounts,  135,  161  ;  letter  of 
credit  drafts  as,  55  ;  receipts,  161 ; 
returned  checks,  27  ;  stubs  in  re- 
ceipt book,  162. 

Wages,  a  claim  on  estate,  114  ;  must 
be  promptly  paid,  no ;  of  married 
women,  1 13 ;  who  is  to  be  sued 
for.  III. 

Wampum  shells  as  money,  3. 

Warranty  deeds,  194. 

Wealth,  how  hoarded,  3,  4  ;  mort- 
gages as,  31  ;  stocks  and  bonds  a 
form  of,  31. 

Weight  of  packages  in  mails,  145  ; 
of  express  packages,  152. 


Wheat  as  money,  3. 

William  the  Conqueror's  landing, 
190. 

Will,  children  must  be  remembered 
in,  235 ;  conditional,  235,  236 ; 
conditions  of  a  valid,  232,  233; 
frauds  in,  240  ;  legal  age  of  maker, 
230;  may  be  broken,  235  ;  man's 
invalidated  by  birth  of  heir,  230 ; 
nuncupative,  239;  probate  of, 
234  ;  real  estate  devised  by,  229 ; 
recording  of,  234;  story  of  Mr. 
Meeson's,  231-232  ;  strange  forms 
of,  233,  234;  woman's  changed 
by  marriage,  230  ;  witnesses,  233, 
234,237,239. 

Wise  Man,  quotations  from,  35,  40, 
65. 

Witnesses,  to  wills,  duties  of,  234 ; 
number  of,  233  ;  restrictions  con- 
cerning, 236;  to  oral,  239;  wo- 
men not  competent  everywhere, 
236. 

Worth,  present,  how  found,  137. 


UNIVERSITY  OF  CALIFORNIA  LIBRARY 
BERKELEY 

Return  to  desk  from  which  borrowed. 
This  book  is  DUE  on  the  last  date  stamped  below. 


FEB  11   1948 


LD  21-100m-9,'47(A5702sl6)476 


3G048i 


UNIVERSITY  OF  CAUFORNIA  UBRARY 


